Which of the Following Is Made Up of Private Physicians

question 45

Multiple Choice

Which of the following is made up of private physicians in private offices who provide services to HMO members as well as clients with other forms of insurance?

• A) Preferred provider organization
• B) Individual practice associations
• C) Medicare
• D) Fee-for-service plans

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Definitions:

Excess Capacity

A situation where a firm or industry has more production resources available than is necessary to produce the current level of output, often indicating inefficiency.

Minimum ATC

Minimum ATC, or minimum average total cost, is the lowest point on the average total cost curve, representing the most efficient scale of production for a firm.

Entry Barriers

Obstacles that make it difficult for new competitors to enter a market, which may include high capital requirements, brand loyalty, or regulatory policies.

Marginal Costs

The cost of producing one additional unit of a good or service.