Which Organization Is Responsible for Making Long-Range Forecasts About the Costs

question 21

Multiple Choice

Which organization is responsible for making long-range forecasts about the costs of Medicare and Medicaid?

• A) Centers for Medicare & Medicaid Services
• B) Food and Drug Administration
• C) Centers for Disease Control and Prevention
• D) Health and Human Services Administration

---

Definitions:

ATC

Average Total Cost, the sum of all production costs divided by the quantity of output produced, reflecting the average cost per unit of output.

AVC

Average Variable Cost is the total variable cost per unit of output, which is calculated by dividing total variable costs by the quantity of output.

MC

Marginal Cost, the increase or decrease in the total cost of a production run for making one additional unit of an item.

Long Run

A period in economic analysis where all factors of production can be varied, and no inputs are fixed.