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Higher values of the herfindahl-hirschman index

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1. True, False, Uncertain

State whether each of the following statements is true, false or uncertain. Explain and support your answer. There is not necessarily one right answer to these questions. All the credit is in the explanation (but you must state T, F, or U).  

a. Higher values of the Herfindahl-Hirschman Index indicate higher levels of competition in those markets.

b. In a DRG payment system, hospitals receive payment according to the number of services rendered.

c. The Food and Drug Administration (FDA) decides whether to approve a drug for use in the U.S. based in part on whether each drug is cost-effective in the treatment of some disease.

d. Phase II drug trials are conducted on animals, while Phase III trials are conducted on healthy volunteers. Both are required for FDA approval.

e. Price controls decrease the innovation rate for drugs but make existing drugs more affordable.

Reference no: EM131857820

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