Regardless of the Cost Structure of Firms in a Competitive

question 440

Multiple Choice

Regardless of the cost structure of firms in a competitive market, in the long run

• A)firms will experience rising demand for their products.
• B)the marginal firm will earn zero economic profit.
• C)firms will experience a less competitive market environment.
• D)exit and entry is likely to lead to a horizontal long-run supply curve.

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Definitions:

Health Care Demanded

Refers to the quantity of health care services that individuals are willing and able to purchase at a given price.

Managed-Care Organizations

Health insurance companies that provide medical care directly to the insured individuals through specific networks of doctors, hospitals, and other healthcare providers.

Health Maintenance Organizations

A type of health insurance plan that provides comprehensive healthcare services to enrolled members for a fixed, prepaid fee.

Preferred Provider Organizations

Health insurance plans that offer members lower copayments if they use doctors, hospitals, and other healthcare providers that belong to the plan's network.