In an unregulated market for healthcare, there is A) a ...

[AEWBW]

In an unregulated market for healthcare, there is
 
  A) a deadweight loss from over-providing healthcare.
  B) a deadweight loss from under-providing healthcare.
  C) no deadweight loss.
  D) Any of the above could be correcting depending on how the marginal cost paid by producers compares to the marginal social cost.

Question 2

A tax equal to the external marginal cost of an activity yields the efficient level of production because the tax
 
  A) achieves the competitive equilibrium.
  B) forces producers to face all costs of production including the external cost.
  C) ensures greater profits for the firm.
  D) eliminates all pollution.

[shaikhs]

Answer to Question 1

B

Answer to Question 2

B

[AEWBW]

Thank you

[shaikhs]

Happy to help you