Health care costs rose more than 10 percent in 2011, according to a survey of insurers by Aon Consulting Worldwide. If the increase in costs solely comes from increased prices for MRI and X-ray machines, then for the health care industry
A) fixed costs are increasing.
B) long run average total cost is decreasing.
C) productivity is increasing.
D) variable costs are increasing.
A
You might also like to view...
In the specific factors model, a 0% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________
A) increase by less then 5%; increase; decrease B) increase by 5%; remain unchanged; remain unchanged C) increase by more then 5%; increase; remain unchanged D) remain constant; increase; increase E) remain constant; decrease; decrease
When the average total cost is at its minimum, it is:
a. equal to average variable cost. b. greater than marginal cost. c. equal to average fixed cost. d. equal to marginal cost. e. less than marginal cost.