Economists Who Support Market-Based Reforms for Health Care Believe That

question 69

Multiple Choice

Economists who support market-based reforms for health care believe that increased competition among providers of health care would

• A)decrease costs but decrease economic efficiency.
• B)decrease costs and increase economic efficiency.
• C)increase costs but increase economic efficiency.
• D)increase costs and decrease economic efficiency.

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Definitions:

Positive Profits

Positive profits occur when a business's total revenues exceed its total costs, indicating financial gain from its operations.

Long Run

Refers to a period where all factors of production and costs can be variable, allowing firms to adjust to changes in the business environment fully.

Short Run

A period in which at least one factor of production is fixed, allowing limited adjustments to changes in production or the business environment.

Perfectly Elastic Demand

A market situation where demand for a product is infinitely sensitive to changes in price, leading to zero consumer tolerance for price increases.