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Effect of externalities on healthcare expenditure

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Healthcare economists argue that the healthcare market behaves differently from conventional markets due to government involvement, externalities, asymmetric knowledge, and uncertainty. The prevention and spread of coronavirus disease 2019 (COVID-19) helps with your understanding of externalities.

1. Explain how externalities (think of COVID-19) contribute to healthcare costs, insurance costs, and quality of services, and detail what practices can mitigate the effect of externalities on healthcare expenditure.

Reference no: EM133109298

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