Which of the Following Is Not a Reason for the Sharp

question 70

Multiple Choice

Which of the following is not a reason for the sharp rise in health-care spending in 2004-2011?

• A) Hospital costs
• B) Pharmaceutic costs
• C) Population aging
• D) Doctor payments

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Definitions:

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets or to different customers.

Natural Monopoly

A market condition in which a single firm can supply a product or service to an entire market at a lower cost than could two or more firms, often due to economies of scale.

Price Elasticity

The degree to which the quantity demanded of a good changes in response to a change in its price.

Marginal Cost

The financial impact of producing another unit of a product or service.