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A major employer has just added health insurance coverage for its employees. Consequently, 5,000 of your patients will pay a $30 copayment rather than the list price of $100 per visit. These patients average 2.2 visits per year. You believe the price elasticity of demand is between ?0.15 and ?0.35. What is your forecast of the change in the number of visits?
Why is the demand for healthcare products usually inelastic?
You estimate that the price elasticity of demand for clinic visits is ?0.25. You anticipate that a major insurer will increase the copayment from $20 to $25. This insurer covers 40,000 of your patients, and those patients average 2.5 visits per year. What is your forecast of the change in the number of visits?
You are a manager for a regional health system. Using an estimate of the price elasticity of demand of ?0.25, how much will ambulatory visits change if you raise prices by 5 percent?
As a manager, it is important to understand how economic ideology, and specifically supply and demand, are a part of your everyday business decisions.
Three students want to order pizza for dinner and they have decided to play the following contribution game in order to collect the money. Each student takes turns in order to place money inside a jar. If at least two students contribute the pizza..
Is limitless growth really possible. What forces do you think will be most important in slowing or halting economic growth.
This problem uses Okun's law to study how the unemployment and inflation rates change when there are demand shocks.
Based on current dividend yields and expected capital gains, the expected rates of return on portfolios A and B are 11% and 14%, respectively. The beta of A is .8 while that of B is 1.5. The T-bill rate is currently 6%, while the expected rate o..
Describe the impact of an increase in government spending on GDP using both Keynesian and classical points of view.
Compute the short-run profit maximizing level of labor and capital demand. Compute the long-run profit maximizing level of labor and capital demand.
Elucidate Classical economists believed in the self-correcting nature of the economic system. They believed that the major adjustment.
Economic fluctuations (or business cycles) are fluctuations in the level of economic activity, relative to a long-term growth trend. Comparing and contrast the economic fluctuation the United States has experiences from 1990 to current date. Provide ..
Among the advantages of technique of forecasting are ease of calculation, relatively little requirement for analytical skills, and the ability to provide the analyst
Assume a merger of company would simultaneously lessen competition and reduce unit costs through economies of scale.
With the following data, calculate the firm's AVC and MVC and draw the graphs for TVC, AVC and MVC. Why is MVC the same as MC
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