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

Question

Want to see more full solutions like this?

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.

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!

Students have asked these similar questions

Suppose the exchange rate between the British pound and the U.S. dollar is £1 = $2.00. The U.S. government implementsU.S. government implements a contractionary fiscal policya contractionary fiscal policy. Illustrate the impact of this change in the market for pounds. 1.) Using the line drawing tool, draw and label a new demand line. 2.) Using the line drawing tool, draw and label a new supply line. Note: Carefully follow the instructions above and only draw the required objects.

Just Part D please, this is for environmental economics

3. Consider a single firm that manufactures chemicals and generates pollution through its emissions E. Researchers have estimated the MDF and MAC curves for the emissions to be the following: MDF = 4E and MAC = 125 – E Policymakers have decided to implement an emissions tax to control pollution. They are aware that a constant per-unit tax of $100 is an efficient policy. Yet they are also aware that this policy is not politically feasible because of the large tax burden it places on the firm. As a result, policymakers propose a two- part tax: a per unit tax of $75 for the first 15 units of emissions an increase in the per unit tax to $100 for all further units of emissions With an emissions tax, what is the general condition that determines how much pollution the regulated party will emit? What is the efficient level of emissions given the above MDF and MAC curves? What are the firm's total tax payments under the constant $100 per-unit tax? What is the firm's total cost of compliance…

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.