Which of the Following Statements Is True of Licensure

question 42

Multiple Choice

Which of the following statements is true of licensure?

• A)It is lauded for having benefits that exceed its costs in increased prices.
• B)It is issued to increase services and decrease administrative expenses.
• C)It is criticized as being designed to block the entry of competitors.
• D)It is used by the federal government to intervene in business.

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Definitions:

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service; it varies depending on the level of production.

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the average cost of producing each unit excluding fixed costs.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as the quantity of output produced changes.

Demand Curve

It graphically represents the relationship between the price of a good and the quantity demanded by consumers, typically depicting an inverse relationship.