2) Health care is an interesting market since for much of the market (Medicare and Medicaid) the government effectively sets a price that it will pay for specific procedures. For example, the amount the government will pay for cataract surgery is $1000. Cataract surgery can be performed in individual doctor's offices. The costs to perform cataract surgery are given by the following diagram. Typical Cataract Procedure Costs S/T MC AC $800 > I IFU and explain: Since the price of $1000 is greater than the minimum point on the AC curve, performing cataract procedures results in positive profits