1. Why might banning advertising drive up prices?

2. Why have economic analyses of clinical and administrative innovations become more important?

3. What does it mean to have market power? Are firms with market power extremely profitable?

4. Treating a patient with congestive heart failure with tPlex rather than is other increases average life expectancy to 12.3 years from 11.5 years. The added cost of therapy is $14,000. What is the cost per life year?

5. A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more productive. Patients wait until the physician is available, so there is virtually no down time. Does this analysis adopt a societal view of costs? Why may this analysis result in a bad managerial decision?