User Account

All Pages

Optimal level of consumption and price of health care

Assignment Help Macroeconomics
Reference no: EM131326308

Would need in an hour.

Suppose the marginal social cost of providing health care to a person is given by the equation 20+4Q. An individual's marginal benefit of health care is 300-Q. This individual has an insurance policy that stipulates that the person will pay 25% coinsurance OOP. That is, the recipient of the care will pay 25% of the MSC.

a. Solve for the optimal level of consumption and price of health care for this society.

b. Solve for the private market equilibrium level of health care. What is the social cost for the last unit at this level? (May not be round numbers.)

c. Calculate the deadweight loss.

d. What are the total OOP costs for this individual?

Reference no: EM131326308

Questions Cloud

Design the state diagram and the state transition table : The output y takes the value 1 and keeps this value thereafter when at least the sequence 00 or 11 occurs at the input, irrespectively of the order of occurrence. Show that this machine requires no more than 9 states.
Evaluate information management in business environments : Evaluate information management, planning, and control in business environments. Describe information technology and information management systems used in marketing, accounting, management control.
What is the required policy mix : What is the required policy mix? Use an IS-LM diagram to show your policy proposal, clearly label Y0 and Y∗
Determine the state table for vending machine : Then, machine waits for another customer. Determine the state table and draw the corresponding state table for this vending machine.
Optimal level of consumption and price of health care : Suppose the marginal social cost of providing health care to a person is given by the equation 20+4Q. An individual's marginal benefit of health care is 300-Q. This individual has an insurance policy that stipulates that the person will pay 25% c..
Discuss about the cultural competency : Cultural competency is described as a set of congruent practice skills, behaviors, attitudes and policies that come embedded in a system, agency, or among consumer providers and professionals.*Cultural competency facilitates the ability to carry o..
Most environmental resources un-priced : Why are most environmental resources un-priced (or under-priced) and what are the consequences of this? Under what circumstances is it desirable to monetize priceless environmental amenities?
How is maryland pilot program designed : With reference to specific examples, then, how is Maryland's pilot program designed to address these elements? Taken together, in addition to employment, why is it thought that the real challenge is in getting ex-offenders "life-ready" as well
Important for the prices of goods : Why is it important for the prices of goods to reflect their true costs of production? What happens when they do not? What policies could be enacted to internalize the full costs? Illustrate one graphically.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd