Health Economics and Policy
7th Edition
ISBN: 9781337106757
Author: James W. Henderson
Publisher: Cengage Learning
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Question
Chapter 9, Problem 1QAP
To determine
Surgeons’ ability in increasing the demand for surgeries and the kinds of surgeries fall into this category and how to determine that they are unnecessary.
Expert Solution & Answer
Explanation of Solution
Surgeons have a higher ability in increasing the demand for surgeries as they attempt to increase the demand for their services that will increase their income. One of the most common surgeries unnecessarily prescribed by the doctors is bypasses. Sometimes even for the minor heart diseases some doctors tend to overprescribe the bypass that may lead towards more complicated medical issues. Women have been identified as the main victims of these unnecessarily prescribed surgeries. With rising demand for hysterectomies and caesarean sections surgeries, this has been evident. One of the most commonly prescribed unnecessary surgeries include removing of the uterus and other parts of the uterus that may lead towards complications in certain situations. In determining these unnecessarily prescribed surgeries, it is recommended that the patients seek opinion from another surgeon/doctor especially in the government sector as they serve the public with less purpose of making profits that is lacking in most of the private sector surgeons and doctors.
Economics Concept Introduction
Introduction:
The objective of this study is to analyze the surgeons’ ability in increasing the demand for surgeries and the kinds of surgeries fall into this category and how to determine that they are unnecessary.
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Consider a firm facing conventional production technology. The short run Production
Function has a small range of increasing marginal product (increasing marginal returns) and
then is subject to the Law of Diminishing Marginal Product (diminishing marginal returns).
A. Putting quantity on the horizontal axis and dollars on the vertical axis, depict three
important curves: Fixed Cost (FC), Variable Cost (VC), and Total Cost (TC). (Note that we
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Suppose that a person’s wealth is $50,000 and that her yearlyincome is $60,000. Also suppose that her money demand functionis given by Md = $Y10.35 - i2Derive the demand for bonds. Suppose the interest rate increases by 10 percentage points. What is the effect on her demand for bonds?b. What are the effects of an increase in income on her demand for money and her demand for bonds? Explain in words
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Question 6 of 18
>
The graph shows the average total cost (ATC) curve, the
marginal cost (MC) curve, the average variable cost (AVC)
curve, and the marginal revenue (MR) curve (which is also
the market price) for a perfectly competitive firm that
produces terrible towels. Answer the three questions,
assuming that the firm is profit-maximizing and does not shut
down in the short run.
What is the firm's total revenue?
S
What is the firm's total cost?
$
What is the firm's profit? (Enter a negative number for a loss.)
$
Price
$320
$300
$200
$150
205 260
336
365
Quantity
MC
ATC
AVC
MR=P
Chapter 9 Solutions
Health Economics and Policy
Knowledge Booster
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