When medical fee schedules are negotiated by two monopolists—one representing patients and one representing providers—the equilibrium medical fees will
a. be greater than fees determined in a competitive market.
b. be less than fees determined in a competitive market.
c. be greater than fees determined by provider groups alone.
d. be less than fees determined by patient groups alone.
e. depend on the relative bargaining strengths of the two groups negotiating the fee schedule.
E
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A monopoly is best defined as a firm that
A) produces a good or service for which no close substitute exists and which is protected by a barrier that prevents other firms from selling that good or service. B) purchases its resources from only one supplier because of a barrier preventing it from buying from other suppliers. C) produces a good or service for which no close substitute exists and that sells all its output to one buyer because there is barrier preventing other buyers from purchasing the good or service. D) cannot control the price it sets for its good or service because there is barrier that prevents the firm from changing the price.
Briefly explain the relationship between output per capita and happiness. Specifically, to what extent are these two variables related?
What will be an ideal response?