If medical care is provided free of charge,
A)no one utilizes it
B)beneficiaries consume it up to the point at which the demand curve intersects the vertical axis
C)beneficiaries derive no consumer surplus from medical care
D)beneficiaries consume the same amount they have always consumed
E)beneficiaries consume it up to the point at which the marginal benefit of the final unit is zero

Question

Quizplus · Accepted Answer

When medical care is free, beneficiaries will consume it until the marginal benefit of the final unit consumed is zero, as there is no cost to deter additional consumption.

If Medical Care Is Provided Free of Charge