(Answered) For an individual suppose the marginal benefit of health

Management Studies

For an individual, suppose the Marginal Benefit of health care consumption is given by the equation P=500-3Q. The Marginal Social Cost of providing this care is 20+2Q. This individual has an insurance policy that stipulates that each unit of health care consumed will have an Out of Pocket (OOP) cost of 20.

a) Solve for the optimal level of consumption and price of health care for this society.

b) Solve for the private market equilibrium level of health care. What is the social cost at this level?

c) Calculate the deadweight loss.

d) What are the total OOP costs for this individual?

e) (Challenge) In order to break even, how large must the premium be to this individual?

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M92579289
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Management

Tell me something about anti trust law about kodak company

Tell me something about anti trust law about Kodak company and its references.

Explain a business process you are familiar with describe

Explain a business process you are familiar with. Describe how a computer-based information system is related (or used) in this business process. Explain how a computer-based information systems can improve the efficienc ...

What are the supply and demand elasticities what are the

What are the supply and demand elasticities, what are the determinants of price elasticity of demand and supply, and demonstrate the relationship between elasticity and total revenue.

In a society where relationships are lineal and people are

In a society where relationships are lineal, and people are believed to be either good or bad, what kind of leadership style would you expect to find?

My homework question is based on the performance of all

My homework question is: Based on the performance of all individuals who tested between July 1, 2014 and June 30, 2017, the GRE Verbal Reasoning scores are normally distributed with a mean of 150.05 and a standard deviat ...

Do you think that everything we do on the internet is

Do you think that everything we do on the internet is anonymous? Why or why not? Why do you think that it might be important to protect our personal privacy on the internet? What measures do you take to protect your pers ...

You are the director of new business development for your

You are the director of new business development for your company, and your vice president wants to expand into new markets overseas. Your company's core competency is in the area of constructing, staffing, and operating ...

Would it help if a non-profit that aims to help the less

Would it help if a non-profit that aims to help the less fortunate lobbied with the United Nations and other international organizations to make the governments in some of the countries to spend a certain percentage of t ...

The text discusses four types of The text discusses four types of communications Top-Down

The text discusses four types of communications Top-Down Bottom-Up Horizontal Grape-Vine Select one communication type that you think is most effective, and one that you think is the least effective in organizations and ...

What are the different types of wireless signals and how

What are the different types of wireless signals and how they are used in applications that support business objectives. Analyze the maturity of each type of wireless signal and give your opinion on whether or not you be ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Management Expert