The possibility of private insurance companies blocking the payment for kidney donation so as to curb the supply of donation.

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Answer 1

Question

Chapter 8, Problem 1DQ

To determine

The possibility of private insurance companies blocking the payment for kidney donation so as to curb the supply of donation.

Expert Solution & Answer

Explanation of Solution

In the given case, the chronic diseases are already known to the patient as well as to the insurer. So, to insure a person suffering from a chronic disease will lead to a definite cost incurred by the insurer.

On the other hand, a person who does not have any chronic disease, does not put a definite cost burden on the insurer, as there are equal chances of having a disease and not having a disease. So, in such a situation, there may be a gain or a loss to the insurer.

Though in the case of chronic disease, the insurer does not gain as he cannot say no to insured persons. Considering the fact that insurance companies are not meant just to earn profits, they must make continuous efforts to reduce the risk of insurance bearers.

As the concentration of power is in few hands, namely private insurance companies, so they would block payments for kidney donors. This is done to reduce the increased costs they have to bear due to increased transplants. So there is an economic incentive for them to oppose the idea of payments to donors given the cascading costs associated with increased transplants.

Economics Concept Introduction

Concept introduction:

Cost refers to a particular amount that is incurred by a firm or an individual to acquire an asset or a service.

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Round Tree Manor is a hotel that provides two types of rooms with three rental classes: Super Saver, Deluxe, and Business. The profit per night for each type of room and rental class is as follows. Rental Class Super Saver Deluxe Business Room Type I Type II $30 $35 $20 $30 $40 Round Tree's management makes a forecast of the demand by rental class for each night in the future. A linear programming model developed to maximize profit is used to determine how many reservations to accept for each rental class. The demand forecast for a particular night is 140 rentals in the Super Saver class, 50 rentals in the Deluxe class, and 40 rentals in the Business class. Round Tree has 100 Type I rooms and 120 Type II rooms. (a) Formulate and solve a linear program to determine how many reservations to accept in each rental class and how the reservations should be allocated to room types. (Assume S₁ is the number of Super Saver rentals allocated to room type I, S₂ is the number of Super Saver…

Answer 2

Question

Chapter 8, Problem 1DQ

To determine

The possibility of private insurance companies blocking the payment for kidney donation so as to curb the supply of donation.

Expert Solution & Answer

Explanation of Solution

In the given case, the chronic diseases are already known to the patient as well as to the insurer. So, to insure a person suffering from a chronic disease will lead to a definite cost incurred by the insurer.

On the other hand, a person who does not have any chronic disease, does not put a definite cost burden on the insurer, as there are equal chances of having a disease and not having a disease. So, in such a situation, there may be a gain or a loss to the insurer.

Though in the case of chronic disease, the insurer does not gain as he cannot say no to insured persons. Considering the fact that insurance companies are not meant just to earn profits, they must make continuous efforts to reduce the risk of insurance bearers.

As the concentration of power is in few hands, namely private insurance companies, so they would block payments for kidney donors. This is done to reduce the increased costs they have to bear due to increased transplants. So there is an economic incentive for them to oppose the idea of payments to donors given the cascading costs associated with increased transplants.

Economics Concept Introduction

Concept introduction:

Cost refers to a particular amount that is incurred by a firm or an individual to acquire an asset or a service.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 1DQ

To determine

The possibility of private insurance companies blocking the payment for kidney donation so as to curb the supply of donation.

Expert Solution & Answer

Explanation of Solution

In the given case, the chronic diseases are already known to the patient as well as to the insurer. So, to insure a person suffering from a chronic disease will lead to a definite cost incurred by the insurer.

On the other hand, a person who does not have any chronic disease, does not put a definite cost burden on the insurer, as there are equal chances of having a disease and not having a disease. So, in such a situation, there may be a gain or a loss to the insurer.

Though in the case of chronic disease, the insurer does not gain as he cannot say no to insured persons. Considering the fact that insurance companies are not meant just to earn profits, they must make continuous efforts to reduce the risk of insurance bearers.

As the concentration of power is in few hands, namely private insurance companies, so they would block payments for kidney donors. This is done to reduce the increased costs they have to bear due to increased transplants. So there is an economic incentive for them to oppose the idea of payments to donors given the cascading costs associated with increased transplants.

Economics Concept Introduction

Concept introduction:

Cost refers to a particular amount that is incurred by a firm or an individual to acquire an asset or a service.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 1DQ

To determine

The possibility of private insurance companies blocking the payment for kidney donation so as to curb the supply of donation.

Expert Solution & Answer

Explanation of Solution

In the given case, the chronic diseases are already known to the patient as well as to the insurer. So, to insure a person suffering from a chronic disease will lead to a definite cost incurred by the insurer.

On the other hand, a person who does not have any chronic disease, does not put a definite cost burden on the insurer, as there are equal chances of having a disease and not having a disease. So, in such a situation, there may be a gain or a loss to the insurer.

Though in the case of chronic disease, the insurer does not gain as he cannot say no to insured persons. Considering the fact that insurance companies are not meant just to earn profits, they must make continuous efforts to reduce the risk of insurance bearers.

As the concentration of power is in few hands, namely private insurance companies, so they would block payments for kidney donors. This is done to reduce the increased costs they have to bear due to increased transplants. So there is an economic incentive for them to oppose the idea of payments to donors given the cascading costs associated with increased transplants.

Economics Concept Introduction

Concept introduction:

Cost refers to a particular amount that is incurred by a firm or an individual to acquire an asset or a service.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1DQ

To determine

The possibility of private insurance companies blocking the payment for kidney donation so as to curb the supply of donation.

Expert Solution & Answer

Explanation of Solution

In the given case, the chronic diseases are already known to the patient as well as to the insurer. So, to insure a person suffering from a chronic disease will lead to a definite cost incurred by the insurer.

On the other hand, a person who does not have any chronic disease, does not put a definite cost burden on the insurer, as there are equal chances of having a disease and not having a disease. So, in such a situation, there may be a gain or a loss to the insurer.

Though in the case of chronic disease, the insurer does not gain as he cannot say no to insured persons. Considering the fact that insurance companies are not meant just to earn profits, they must make continuous efforts to reduce the risk of insurance bearers.

As the concentration of power is in few hands, namely private insurance companies, so they would block payments for kidney donors. This is done to reduce the increased costs they have to bear due to increased transplants. So there is an economic incentive for them to oppose the idea of payments to donors given the cascading costs associated with increased transplants.

Economics Concept Introduction

Concept introduction:

Cost refers to a particular amount that is incurred by a firm or an individual to acquire an asset or a service.

Answer 6

Chapter 8, Problem 1DQ

To determine

The possibility of private insurance companies blocking the payment for kidney donation so as to curb the supply of donation.

Expert Solution & Answer

Explanation of Solution

In the given case, the chronic diseases are already known to the patient as well as to the insurer. So, to insure a person suffering from a chronic disease will lead to a definite cost incurred by the insurer.

On the other hand, a person who does not have any chronic disease, does not put a definite cost burden on the insurer, as there are equal chances of having a disease and not having a disease. So, in such a situation, there may be a gain or a loss to the insurer.

Though in the case of chronic disease, the insurer does not gain as he cannot say no to insured persons. Considering the fact that insurance companies are not meant just to earn profits, they must make continuous efforts to reduce the risk of insurance bearers.

As the concentration of power is in few hands, namely private insurance companies, so they would block payments for kidney donors. This is done to reduce the increased costs they have to bear due to increased transplants. So there is an economic incentive for them to oppose the idea of payments to donors given the cascading costs associated with increased transplants.

Economics Concept Introduction

Concept introduction:

Cost refers to a particular amount that is incurred by a firm or an individual to acquire an asset or a service.

Answer 7

Chapter 8, Problem 1DQ

To determine

The possibility of private insurance companies blocking the payment for kidney donation so as to curb the supply of donation.

Answer 8

Expert Solution & Answer

Explanation of Solution

In the given case, the chronic diseases are already known to the patient as well as to the insurer. So, to insure a person suffering from a chronic disease will lead to a definite cost incurred by the insurer.

On the other hand, a person who does not have any chronic disease, does not put a definite cost burden on the insurer, as there are equal chances of having a disease and not having a disease. So, in such a situation, there may be a gain or a loss to the insurer.

Though in the case of chronic disease, the insurer does not gain as he cannot say no to insured persons. Considering the fact that insurance companies are not meant just to earn profits, they must make continuous efforts to reduce the risk of insurance bearers.

As the concentration of power is in few hands, namely private insurance companies, so they would block payments for kidney donors. This is done to reduce the increased costs they have to bear due to increased transplants. So there is an economic incentive for them to oppose the idea of payments to donors given the cascading costs associated with increased transplants.