Regarding the production of health care, more recent studies suggest that:
A) economies of scale exist up to a hospital size of approximately 500 beds.
B) hospitals of many different sizes can compete effectively with each other on the basis of cost.
C) the LRAC curve exhibits significant diseconomies of scale beginning with a hospital size of approximately 100 beds.
D) the LRAC for hospitals exhibits a very distinct U shape.
B
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If the price elasticity of demand for good A is -1, then a 1% increase in
A) consumer income will result in a 1% decrease in the demand for good A. B) consumer income will result in a 1% increase in the demand for good A. C) the market price of good A will result in a 1% increase in the quantity demanded of good A. D) the market price of good A will result in a 1% decrease in the quantity demanded of good A.
Which of the following statements is TRUE with respect to total utility and marginal utility?
A) Marginal utility always rises as total utility increases. B) Marginal utility can decline as total utility rises. C) Total utility is not related to marginal utility. D) Total utility can decline while marginal utility rises.