1. Identify a healthcare company with market energy. What traits led you to settle on the company that you did? (5 sides)
2. Given the next ask and price circumstances for a monopolistic clinical practice, predict the earnings-maximizing tag and quantity of companies utilized. The cost circumstances are as follows: mounted costs are $200 and marginal costs are $70 per seek the advice of with. (5 sides) Imprint ($) Quantity of Visits Demanded 300 0 270 1 240 2 210 3 180 4 150 5 120 6
3. A physician practice serves two groups of sufferers. One community, with cramped insurance coverage, has ask represented by Seek recordsdata from Time desk A; the loads of, with comprehensive insurance coverage, has ask represented by Seek recordsdata from Time desk B in the next desk. The cost to develop a seek the advice of with is $75. The practice wants to tag discriminate in stammer to maximize earnings. (1) What tag would possibly perchance well well restful it charge every affected person in community A? What tag would possibly perchance well well restful it charge every affected person in community B? (3 sides) (2) Compare tag elasticities of ask in two groups. Compare earnings-maximizing tag in two groups. What sample did you seek for on the relationship between earnings-maximizing prices and price elasticities of ask? (2 sides)
Seek recordsdata from Time desk A Seek recordsdata from Time desk B Imprint ($) Change of Visits Imprint ($) Change of Visits 300 1 300 6 270 2 270 7 240 3 240 8 210 4 210 9 180 5 180 10
4. The next desk presentations hospitals working in two cities and their annual assortment of
affected person days in thousands: Metropolis 1 Metropolis 2
Health center Patient Days Health center Patient Days A 30 H 120 B 170 I 120 C 220 J 108 D 90 K 96 E 140 L 78 F 50 M 78
Compare the focus of the markets in the two cities using the Herfindahl- Hirschman Index (HHI). What did you study about market concentrations in the two cities? (5 sides)
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