A. True/False Explain. Indicate whether each of the following statements is true or false and then explain why you think this. Include in your explanation any pertinent institutional details and economic reasoning (including appropriate graphs and equations). Please provide concise, clear answers with minimal irrelevant detail. Explanation is required.

1. According to the Dartmouth Atlas of Healthcare, most of the variation in Medicare spending across different regions in the US can be explained by the underuse of important preventative care services in many areas of the country.

2. Small area variations in healthcare spending are generally regarded as an indication that there is some source of inefficiency in healthcare delivery. True or false: if the health production function does not have diminishing marginal returns, then geographic variations in health spending could actually be an efficient outcome.