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By law, you must charge everyone the same price. What do you charge? Your costs equal $100,000 plus $20 per visit. What are your revenues,

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  1. By law, you must charge everyone the same price. What do you charge?
  2. Your costs equal $100,000 plus $20 per visit. What are your revenues, costs, and profits?
  3. If you could charge the two groups different prices, what prices would you charge each group?
  4. What would your revenues, costs, and profits be?
  5. Would this scenario be ethical?
  6. How could you identify the two groups? (You cannot do income surveys of your patients.)
Low-Income High-Income Clients Price Clients Total $35.75 16,375 2,125 14,250 $35.25 14,750 2,375 17,125 $34-75 2,625 17,875 15,250 $34.25 2,875 18,625 15,750 $33.75 16,250 3,125 19,375 $33.25 16,750 20,125 3,375 $32.75 20,875 3,625 17,250 $32.25 3,875 21,625 17,750 $31.75 18,250 22,375 4,125 $31.25 18,750 23,125 4.375 $30.75 4,625 23,875 19,250 $30.25 24,625 4,875 19,750 $29.75 20,250 25,375 5,125 $29.25 26,125 20,750 5.375 $28.75 26,875 5,625 21,250 $28.25 5,875 27,625 21,750 $27.75 28,375 6,125 22,250 $27.25 6,375 22,750 29,125 Low-Income High-Income Clients Price Clients Total $35.75 16,375 2,125 14,250 $35.25 14,750 2,375 17,125 $34-75 2,625 17,875 15,250 $34.25 2,875 18,625 15,750 $33.75 16,250 3,125 19,375 $33.25 16,750 20,125 3,375 $32.75 20,875 3,625 17,250 $32.25 3,875 21,625 17,750 $31.75 18,250 22,375 4,125 $31.25 18,750 23,125 4.375 $30.75 4,625 23,875 19,250 $30.25 24,625 4,875 19,750 $29.75 20,250 25,375 5,125 $29.25 26,125 20,750 5.375 $28.75 26,875 5,625 21,250 $28.25 5,875 27,625 21,750 $27.75 28,375 6,125 22,250 $27.25 6,375 22,750 29,125

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