Medical arms races, since they are a form of private competition, lead to socially optimal levels of technology acquisition by hospitals. (Is this statement true or false? Justify your answer.) (2 pts) According to Gaynor, Laudicella, and Propper (2011), (1) In the U.K., most hospitals are owned by the government, rather than privately held. In a setting where most hospitals are not owned by the government (such as in the U.S.), what effect do you predict that hospital mergers would have on the price of hospital care? (2 pts) (2) Can you think of reasons why hospital mergers might lead to improvements in the quality of care for a given level of inputs (which is one measure of hospital productivity)? (2 pts) (3) How might the fact that a hospital is run by the government in the U.K. change your prediction about the effect of hospital mergers on productivity? (2 pts) According to Bartel et al. (2011), general human capital includes the sorts of broad skills that people might learn during schooling; these sorts of skills apply to many kinds of work settings. By contrast, specific human capital includes the sorts of skills and knowledge that someone might learn while