A Third-Party Payment Refers To

question 39

Multiple Choice

A third-party payment refers to:

• A) a payment made by a consumer for a good or service obtained on credit.
• B) a payment made to the provider of a good or service by a party other than the buyer.
• C) the payment made for used goods and services.
• D) the fact that insurance companies prefer to pay for the care rendered by third parties in institutional settings.

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Definitions:

Average-Variable-Cost Curve

A graphical representation showing how the average variable cost of production changes as the quantity of output is altered.

Average Variable Cost

The sum of all costs that vary with output levels, divided by the total quantity of produced output.

Average Total Cost

The aggregate expense of manufacturing (comprising both fixed and variable expenditures) divided by the overall amount produced.

Marginal Cost

The incremental cost of producing an extra unit of a good or service.