The marginal cost of health insurance is a constant $8,000 a year and the figure shows the marginal benefit and willingness and ability to pay curve. Suppose that the marginal social benefit from insurance exceeds the willingness and ability to pay by a constant $2,000 per family per year. If the government decides to subsidize health insurance (like Obamacare), what subsidy will achieve the efficient coverage? The total subsidy that achieves the efficient coverage is $ billion. 12- 10- 8- 2- 0 Premium (thousands of dollars per year) 10 20 30 40 50 Quantity (millions of families insured) D=MB 으 60

The marginal cost of health insurance is a constant $8,000 a year and the figure shows the marginal benefit and willingness and ability to pay curve. Suppose that the marginal social benefit from insurance exceeds the willingness and ability to pay by a constant $2,000 per family per year. If the government decides to subsidize health insurance (like Obamacare), what subsidy will achieve the efficient coverage? The total subsidy that achieves the efficient coverage is $ billion. 12- 10- 8- 2- 0 Premium (thousands of dollars per year) 10 20 30 40 50 Quantity (millions of families insured) D=MB 으 60

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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