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Author Question: In an unregulated market for healthcare, there is A) a deadweight loss from over-providing ... (Read 66 times)

AEWBW

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on: Jun 29, 2018
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.


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shaikhs

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Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

B


AEWBW

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Reply #2 on: Jun 29, 2018
Thank you :)


shaikhs

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Reply #3 on: Jun 29, 2018
Happy to help you


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