Which of the following best describes a good with perfectly elastic supply?
A) Any increase in the price of the good leads to an increase in the seller's revenue.
B) Any increase in the price of the good decreases the quantity supplied of the good by more than the price change.
C) Any increase in the price of the good will induce the firm to supply an infinite quantity of the good.
D) Any increase in the price of the good increases the quantity supplied of the good exactly by the amount of the price change.
C
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The predominate organizational form for U.S. hospitals is not-for-profit. Why?
a. The profit motive corrupts human behavior. b. For-profit hospitals do not provide charity care. c. Private not-for-profit hospitals engage in most of the medical research. d. The not-for-profit form provides the most benefits to physicians. e. All of the above.
In a perfectly competitive market, the good or service cannot differ substantially among sellers
a. True b. False