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 costs to buy MRI and X-ray machines, then for the health care industry:

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