Currently charge private pay patients

Assignment Help Business Economics

Reference no: EM131004702

You serve 3,000 price pay patients and 1,000 HMO members. Fixed costs are $500,000, incremental costs is $50. You currently charge private pay patients $75 and HMO members $60....

a. This line of business is profitable

b. Profits will increase of u stopped serving HMO members

C. You should stop serving HMO members of fixed costs increase to $60,000

D. All the above

Reference no: EM131004702

Questions Cloud

Demand and supply functions for seats on flights : The weekly demand and supply functions for seats on flights between Syracuse and Boston have been estimated as follows: Qd = 1600 - 2.5 Price + .040 Income - 4 Weather + 1.20 Pa ( where Pa is the price of alternative means of travel ) Qs = -50 + 4.25..

Find out the equilibrium price and quantity in the market : Let the market demand and market supply curves are given by the following equations: Find out the equilibrium price and quantity in the market? If due to technological progress supply curve shifts by 100 percent, what would be the new equilibrium pri..

Maintenance costs on a certain piece of equipment : Maintenance costs on a certain piece of equipment are estimated to be $500, $600, $700, $800, and $900 at the ends of years 1, 2, 3, 4, and 5, respectively. The time value of money rate is 8 percent compounded annually.

Currently charge private pay patients : You serve 3,000 price pay patients and 1,000 HMO members. Fixed costs are $500,000, incremental costs is $50. You currently charge private pay patients $75 and HMO members $60....

Moral hazard-consider three investment projects : [Moral Hazard] Consider three investment projects A, B and C. Project A costs $10 and the return is $20. Project B costs $10 and the return is $40 with probability 0.4 and $-10 otherwise. Project C costs $20 and the return is $60 with probability 0.3..

Explain all aspects and facets of the lesson : Briefly summarize Hazlitt's economic "Lesson". Be sure to explain all aspects and facets of “The Lesson”. Briefly apply "The Lesson" to government price-fixing in general, and rent controls and minimum wage laws in particular. Be specific and precise..

Example of cost externality occurs when a mining company : An example of a cost externality occurs when a mining company

Firms in monopolistic competition would : Firms in monopolistic competition would

User Account

All Pages