Health Care Costs Are Expected to Rise More Than 10

Multiple Choice

Health care costs are expected to rise more than 10 percent into 2011, according to a survey of insurers by Aon Consulting Worldwide. If the increase in costs is expected to solely come from increased wages to nurses and doctors, then for the health care industry:

A) Variable costs are increasing.
B) Fixed costs are increasing.
C) Long run average total cost is decreasing.
D) Productivity is increasing.