Solution for basic health insurance regarding payment and use of insurance.
Health Insurance Basics
(a) Illustrate what is a fixed payment made by a privately insured patient in exchange for receiving a medical good as well as service?
(b) What is the percentage of each medical bill that the patient pays rather than a flat dollar amount?
(c) Suppose you have complete health insurance. In terms of marginal benefits/costs, you will use medical care up to what point?
(d) If you have no health insurance, you will use medical care up to what point?