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Kenneth Arrow, in his 1963 paper discusses evidence that health care markets are not sufficiently competitive to maximize welfare. In particular, he notes that the

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Kenneth Arrow, in his 1963 paper discusses evidence that health care markets are not sufficiently competitive to maximize welfare. In particular, he notes that the presence of price discrimination is not consistent with competitive markets. He further discusses evidence that price levels are not consistent with profit maximization. Discuss why price discrimination is not consistent with competitive markets, and why Arrow concludes that prices in medical markets are not profit maximizing

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