What is a dominant strategy in game theory? replace the entry in the first row and second column with (125, -50). Does A have a dominant strategy? Does B? What is the solution to this game? Suppose that a hospital has the ability to be a perfect price discriminator in a private market, that is, it can charge every private patient the maximum that the patient is willing to pay. Explain how this will affect the number of private patients the hospital will take and the impact on the hospital’s profits. If physician fees are fixed so that they do not adjust to changes in supply, explain how a firm whose demand curve slopes downward would react if the fixed fee were lowered, perhaps by the government. In the utility maximizing model, what forces limit a provider’s ability and willingness to engage in SID? In the profit-maximizing model of SID, what are costs of the physician of inducement? Give examples of inducement costs.