When you have health insurance, your marginal benefit of a visit to the doctor's office is _____, and your marginal cost is _____.
A)higher; higher
B)unchanged; higher
C)higher; lower
D)unchanged; lower

Question

Quizplus · Accepted Answer

With health insurance, the marginal benefit of a doctor's visit remains unchanged because the benefit is related to the health improvement from the visit. However, the marginal cost is lower because insurance covers part of the cost, reducing the out-of-pocket expense for the patient.

When You Have Health Insurance, Your Marginal Benefit of a Visit