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Assume Joseph has relatively pool health and has a demand curve for physician visits of Q=20-. 15(P) and the marginal cost of a physician visit
Assume Joseph has relatively pool health and has a demand curve for physician visits of Q=20-. 15(P) and the marginal cost of a physician visit is $60 in answering questions. How many visits will Joseph consume without insurance? Assume Joseph obtains full insurance coverage for medical care. How many more visits will he consume with full insurance? What a the welfare loss value in dollars associated with Joseph becoming fully insured
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