One rationale for government involvement in health care markets is that government involvement is necessary to prevent the spread of contagious diseases, which can be a type of externality
Which of the following is not an example of a public health externality? a. The provision of vaccinations against communicable diseases. b. The provision of clean drinking water to prevent the spread of water-borne diseases. c. The elimination of pools of standing water to help prevent the spread of malaria.
d. The provision of drugs to help control cholesterol, a primary factor in heart disease.
d
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Which of the following is not a limitation of the survivor technique for measuring the optimum size of firms within an industry?
a. since the technique does not employ actual cost data in the analysis, there is no way to assess the magnitude of the cost differentials between firms of varying size and efficiency. b. the managerial and entrepreneurial aspects of the production process are not included in the analysis c. because of legal factors, the long-run cost curve derived by this technique may be distorted and may not measure the cost curve postulated in economic theory d. a and b e. b and c
A firm in a perfectly competitive industry will expand output as long as: a. marginal revenue is less than average revenue. b. marginal cost is less than marginal revenue
c. marginal cost is less than average total cost. d. marginal revenue is less than average total cost.