What is the optimal price for these two insurance options

Assignment Help Econometrics

Reference no: EM13183291

As a dentist you find that a person's annual demand curve for appointments are P=500-50Q

The marginal cost for your service is $50

There are three ways you could charge for your services

-Charge $50 each time someone makes an appointment

-Sell an annual insurance policy in which if the patient buys the policy each visit is a co-pay of $20

-Sell a lifetime insurance where when the patient buys the policy each visit is free

1. What is the optimal price for these two insurance options

a. The Annual insurance policy

b. The lifetime insurance policy

2. What is your level of profit and how many visits do you expect per patient for these 3 options

Reference no: EM13183291

Questions Cloud

Compute the number of sodium ions in sodium phosphate : Calculate the number of sodium ions in (6.107x10^1) g sodium phosphate. 2. An aqueous solution of 10.0 grams of ammonium sulfide is mixed with an aqueous soluion of 10.0 grams of copper (II) chloride. What is the formula of the compound that precipit..

Prepare a partial balance sheet for withers on december : Record all necessary depreciation and amortization entries on December 31, 2009 and prepare a partial balance sheet for Withers on December 31, 2009.

Calculate the heat that must be supplied : Calculate the heat that must be supplied to 0.104g of Ne(g) at 0.250 atm to raise its temperature from 22.0 degree Celsius to 60.0 degree Celsius at

Determine brook streets ending inventory : Determine Brook Street's ending inventory, cost of goods sold, and gross profit for January 2009, assuming the company uses a perpetual inventory system and the following inventory costing methods: (1) FIFO, (2) LIFO, and (3) moving-average.

What is the optimal price for these two insurance options : As a dentist you find that a person's annual demand curve for appointments are P=500-50Q. The marginal cost for your service is $50 There are three ways you could charge for your services -Charge $50 each time someone makes an appointment -Sell an an..

Evaluate pand capital interests : Profits and capital interests have remained unchanged since the partnership was formed. Thomas is actively involved in managing the business while the limited partners are simply investors.

What should beasley world do based on an irr analysis : Beasley World Industries has a division that makes air conditioners. They face a three-year deadline to eliminate their current technology due to the chilling technique they use. There is a near-term solution that may be done (1) and a longer-term..

Compute the heat that must be supplied : Calculate the heat that must be supplied to 0.104g of Ne(g) at 0.250 atm to raise its temperature from 22.0 degree Celsius to 60.0 degree Celsius at

Compute the molecular weight of isoamyl acetate : calculate the molecular weight of Isoamyl acetate with a density of 0.876. Then calculate the theoretical yield of isoamyl acetate in ml, grams and moles. Show all work and calculations.

User Account

All Pages