The cost disease of personal services causes
a. the cost of health care to rise faster than the economy's rate of inflation.
b. legislators to blame declining standards of quality at public hospitals on greedy doctors or administrators.
c. legislators to propose price controls on insurance.
d. All of the above are correct.
d
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Because there are low barriers to entry in a monopolistically competitive market
A) there are many firms in the industry. B) they produce a homogeneous product. C) the firms are price takers. D) there is no non-price competition.
Free entry means that
a. the government pays any entry costs for individual firms. b. government-funded research lowers the costs of patents and other barriers to entry. c. a firm's marginal cost is zero. d. no legal barriers prevent a firm from entering an industry.