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Question 8 Economies of scale mean that a group physician practice is likely to

ID: 2785095 • Letter: Q

Question

Question 8

Economies of scale mean that a group physician practice is likely to return more income to physicians than an individual practice.

True

False

Question 9

Charging higher premiums to women of child bearing age than to men of the same age is an example of price discrimination.

True

False

Question 10

The total cost of attending medical school is covered by payments from all of the following sources except

a)tuition payments from students.

patient fees.

Stark law.

government subsidies or donations to medical schools.

e) National Institutes of Health research funding.

a)tuition payments from students.

b)

patient fees.

c)

Stark law.

d)

government subsidies or donations to medical schools.

e) National Institutes of Health research funding.

Explanation / Answer

8.

Economies of scale is defined as if peoduction level increase then total cost will reduce becasue fixed cost remains conatant. So, if group physician practice is likely to return more income to physicians than an individual practice beause some of the fixed cost remains constant and distribute among group of doctors.

Statement is true.

9.

Charging higher premiums to women of child bearing age than to men of the same age is an example of price discrimination.

Statement is true.

10.

The total cost of attending medical school is covered by payments from government subsidies or donations to medical schools.

Option (C) is correct answer.

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