Fully insured person visit the physician

Assignment Help Microeconomics

Reference no: EM13232167

Suppose that an individual's demand for the number of physician visits per year, Q, can be represented by the following equation: Q = 50-0.4 P, where P, the market price of an office visit, equals physician's constant marginal cost of $110. Determine the efficient number of office visits If the individual has no insurance.
Now assume the individual purchases full insurance coverage and the demand for (but not quantity demanded of) physician care remains unchanged.
A)How many times would this fully insured person visit the physician?
B) Calculate the welfare loss (DWL) associated with this insurance coverage.

Reference no: EM13232167

Questions Cloud

What should tracy do about this situation : She always has everything done in a timely manner and her books balance at the end of every day. What should Tracy do about this situation?

Social psychology concept matrix : : Social Psychology Concept Matrix

How might a negative base salary be implemented in reality : The value of a successful project is $420,000; the probabilities of success are 1/2 with good supervision and 1/4 without. The manager is risk-neutral, not risk-averse as in the text, so his expected utility equals his expected income minus his di..

Calculate bwbs new long-run equilibrium demand curve : Determine the output level, price, and profits that will occur in long-run equilibrium. Assume a high-price, low-output scenario assuming a parallel shift of the firm's demand curve. Be sure to explain what you are doing and why.

Fully insured person visit the physician : How many times would this fully insured person visit the physician?

What is the quantity of households : What is the quantity of households that would subscribe at a price of $0?

The quantity demanded of corn increase percent : What percentage would the quantity demanded of corn increase?percent.

No harmful effects on employment : "Output per worker is expected to increase by 10 percent during the next year. Therefore, wages can also increase by 10 percent with no harmful effects on employment, output prices, or employer profits." Analyze this statement.

Solve for the equilibrium output : Given the information above solve for the equilibrium output

User Account

All Pages