In the long run in perfect competition, firms will operate at
a. minimum average total cost.
b. an average total cost that is just slightly above the minimum.
c. an average total cost that is about 10% above the minimum.
d. an average total cost that is below price.
A
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In a single payer model of healthcare, the government pays for all healthcare. Because patients access healthcare at a zero or low cost, the quantity of healthcare services demanded exceeds the quantity provided
A) Both sentences are false. B) The first sentence is false; the second sentence is correct. C) The first sentence is correct; the second sentence is false. D) Both sentences are correct.
Normative analysis is very important to public finance because _____
a. public policy enacted by government is the result of voting by individuals b. positive analysis is full of value judgments c. we should be concerned with how the world works d. voluntary exchanges are economically efficient