When Consumers Pay Only a Fraction of the True Cost

question 113

Multiple Choice

When consumers pay only a fraction of the true cost of medical services, their demand increases.The marginal cost of producing these extra services

• A)is greater than the marginal benefit consumers receive from them.
• B)is less than the marginal benefit consumers receive from them.
• C)is equal to the marginal benefit consumers receive from them.
• D)is zero due to the insurance payments.