What attributes of healthcare products make tasks easy to do

Reference no: EM132327393

Question: 1. Why are most healthcare providers able to charge different groups of purchasers different prices for the same products?

2. Price discrimination requires the ability to distinguish customers who are the most price- sensitive and the ability to prevent arbitrage (resale of your products by customers who buy at low prices). What attributes of healthcare products make these tasks easy to do?

3. Can you think of a healthcare firm that does not price discriminate (i.e., charge different customers different amounts for the same product)?

4. Your firm spent $100 million developing a new drug. It has now been approved for sale, and each pill costs $1 to manufacture. Your market research suggests that the price elasticity of demand in the general public is -1.1.

• What price do you charge the public?

• What would happen to profits if you charged twice as much?

• What role does the $100 million in development costs play in your pricing decision?

• The Medicaid agency has made a take-it-or-leave-it offer of $2 per pill. Do you accept? Why or why not?

Reference no: EM132327393

Questions Cloud

Differences of formal and informal work groups : What are the similarities and differences of formal and informal work groups?

What are the different ways the internet can increase value : What are the different ways the Internet can increase value to consumers and to health care providers and health plans? The Internet/e-commerce can increase.

Provide a overview of how amazon : Provide a overview of How Amazon, Apple, Facebook and Google manipulate our emotions.

What are the 4 risk-and quality-management tools : What are the 4 risk-and quality-management tools used in the health care industry?

What attributes of healthcare products make tasks easy to do : Price discrimination requires the ability to distinguish customers who are the most price- sensitive and the ability to prevent arbitrage.

Explain the four types of reinforcement : First, define and explain the four types of reinforcement, including their effect on behavior.

Demonstrate how course research put into practice : This assignment is a written assignment where student will demonstrate how this course(Information Technology in Global Economy) research has connected.

Osteoporosis and arthritis can compromise bone health : It is common knowledge that osteoporosis and arthritis can compromise bone health as people age. Osteogenesis imperfecta. Fibrodysplasia ossificans progressive

Define the demand for a product or service : Define the demand for a product or service. What does the law of demand say? How is the quantity and the equilibrium price determined in a free market economy?

User Account

All Pages