Question

A competitive market in healthcare would​ _______. A. overprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers B. underprovide healthcare because it would eliminate Medicare and Medicaid C. underprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers D. overprovide healthcare because it would be similar to the approach used in Canada

Answer 1

Answer: a. overprovide healthcare because the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers

Explanation:

Healthcare is a vital sector if not the most important that seeks to keep the human life sustained in good health and when ill. The moment the health sector of a Nation is compromised it plays a big risk to the habitants of that nation because when people fall ill, there would be no one to cater or no process in place. That's why overproviding healthcare is necessary because of the marginal social benefit of healthcare exceeds the marginal benefit perceived by consumers.