Question

Do you agree or disagree with each of the following statements? Explain your answer.

1. Medical care is an example of a potentially inefficient market because consumers do not have perfect information about the product.

Reference: Principles of Micoeconomics

Answer 1

it can be mentioned that I agree with the given statement where Medicare can be considered as one of the most in efficient markets because of the fact that the consumers don't have adequate information regarding the underlying facilities and clauses of Medicare and also this is a service which is not intended for profit maximization as a result of which it is important for the players in the market to stay motivated irrespective of the profit-maximizing quantities all levels of output where the consumer surplus and producer surplus might not be maximized all the time which makes the market more inefficient due to government interference and moral principles.