Basis for public policy proposals

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The theory of cost shifting is often used as the basis for public policy proposals. Some believe that the increase in increase premiums is due to cost shifting. This will be the topic of this week’s paper. Briefly discuss what cost-shifting is. Discuss the 4 points associated with determining the profit-maximizing price. Why do private purchasers claim that they are being charged more to make up for lower prices paid by the government? What are some of the conditions under which cost shifting can occur? Based on your research, do you feel that cost-shifting is occurring?

Reference no: EM132245845

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