If the (Steadily Increasing)marginal Cost of Another Day Spent in the Hospital

question 113

Multiple Choice

If the (steadily increasing) marginal cost of another day spent in the hospital exceeds the (steadily decreasing) marginal benefit of an additional day spent in the hospital, the rational consumer of health care services would be predicted to

• A)choose not to stay in the hospital for that additional day.
• B)stay in the hospital for at least that additional day.
• C)demand a private hospital room.
• D)regret having ever entered that hospital.

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Definitions:

Ex-Dividend Date

The date on or after which a security is traded without the right to receive the next dividend payment.

Cash Dividend

A payment made by a company out of its earnings to shareholders in the form of cash.

Date of Record

The cut-off date set by a company in order to determine which shareholders are eligible to receive a dividend or distribution.

Three-For-One Split

A stock split in which each shareholder receives three new shares for each share they currently own.