1: Why are most healthcare providers able to charge different groups of purchasers different prices for the same products? Provide an example of this currently in practice.

2: Your marketing department estimates that Medicare urology visits equal:

5 - (1.0 xC) + (-6.5 x To) + (5 x Tr) + (0.01 x Y)

Here, C denotes the Medicare co-payment (now $20), To is waiting time in your own clinic (now 30 minutes), Tr is waiting time in your competitor's clinic (now 40 minutes), and Y is per capita income (now $40,000).

a) How many visits do you anticipate?

b) Medicare's allowed fee is $120. What revenue do you anticipate?

c) What might change your forecast of visits and revenue?