A Factor Price Taker Faces

question 104

Multiple Choice

A factor price taker faces

• A)a perfectly elastic demand curve for the product it sells.
• B)a downward-sloping demand curve for the product it sells.
• C)a perfectly elastic supply curve of factors.
• D)an upward-sloping supply curve of factors.
• E)a perfectly inelastic supply curve of factors.

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Definitions:

Allowed Charge

The amount that is the most the payer will pay any provider for each procedure or service.

Copayment

A fixed amount that a healthcare beneficiary pays for covered medical services, usually at the time of receiving the service.

Capitated Payment

A payment arrangement in healthcare where a provider is paid a set amount for each enrolled person assigned to them, regardless of the number of services provided.

Medical Provider

An individual or institution that offers healthcare services to patients.