b. Suppose that, instead of determining the price of medical checkups by a market process, large health

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b. Suppose that, instead of determining the price of medical checkups by a market process, large health insurance companies set their reimbursement rates, effectively determining all medical prices. A medical doctor receives $35 per checkup from an insurance company, and a patient pays only $10. How many checkups do doctors offer collectively? What is the equilibrium quantity and price of dental checkups?

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Microeconomics With Calculus

ISBN: 9780273789987

3rd Global Edition

Authors: Jeffrey M. Perloff

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