In a Contestable Market, _____

question 32

Multiple Choice

In a contestable market, _____.

• A) potential entrants do not have access to the same technology as incumbent firms
• B) sunk costs are likely to be zero
• C) incumbent firms find it difficult to exit because of high sunk costs
• D) there are high barriers to entry

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Definitions:

Accept Assignment

In healthcare, agreeing to accept the insurance company's payment as full payment for services rendered.

Health Maintenance Organizations

A type of health insurance plan that typically requires members to receive care from a network of specified healthcare providers and facilities to be covered.

Capitated Rate

A payment arrangement for healthcare service providers where they receive a set amount for each enrolled person assigned to them, regardless of the amount of services provided.

Copayments

A fixed amount paid by a patient for a covered healthcare service, usually when receiving the service, with the rest covered by their insurance.