Which of the following is NOT a reason for the government to regulate a nonmonopolistic industry?
A) to allow firms to achieve the profit maximizing output
B) asymmetric information
C) to protect consumer interests
D) market failures
A
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Economic theory indicates that the growth of subsidies to healthcare consumers and accompanying expansion in third-party payments will
a. place downward pressure on the prices of healthcare services. b. lead to higher healthcare prices. c. increase the incentive of consumers to economize on their purchases of healthcare services. d. increase the incentive of healthcare providers to provide their services at economical prices.
Other things the same, if the price level is lower than expected, then some firms believe that the relative price of what they produce has
a. decreased, so they increase production. b. decreased, so they decrease production. c. increased, so they increase production. d. increased, so they decrease production.