When New Entrants into a Competitive Market Have Higher Costs

question 83

Multiple Choice

When new entrants into a competitive market have higher costs than existing firms,

• A)accounting profits will be the primary determinant of entry into the market.
• B)sunk costs become an important determinant of the short-run entry strategy.
• C)market price will rise.
• D)long-run supply is constant.

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Definitions:

Advance Beneficiary Notice (ABN)

Document used to notify a Medicare beneficiary that it is either unlikely that Medicare will pay or certain that Medicare will not pay for the service they are going to be provided. Beneficiaries are required to sign this document if they wish to have the service with the understanding that they will be responsible for payment.

Medicare

A federal health insurance program in the United States for people aged 65 and over, as well as for some younger individuals with disabilities.

Insurance Coverage

A contractual arrangement in which an insurer agrees to compensate an insured for loss, damage, or liability in return for payment of a premium.

Electronic Eligibility Features

Digital tools or systems used by healthcare providers to verify a patient's insurance coverage and benefits.