Question
Please help me answer this question The federal agency responsible for covering the cost of dental care for low-income seniors has set a rate of
Please help me answer this question
- The federal agency responsible for covering the cost of dental care for low-income seniors has set a rate of $100 for various dental treatments. In addition to these seniors, dentists have patients who pay for their dental services. The demand curve for each dentist is shown below.
Out of Pocket Price
- $160
- 145
- 130
- 115
- 100
- 85
- 70
Quantity of Dental Treatments Demanded
- 0
- 3
- 6
- 9
- 12
- 15
- 18
Each dentist also has a cost schedule as show below
Quantity of Dental Treatments Demanded
- 0
- 3
- 6
- 9
- 12
- 15
- 18
Total Cost:
- 250
- 350
- 550
- 850
- 1250
- 1750
- 2350
a.If each dentist in this system works on a profit-maximizing basis, how many treatments will be provided to both the paying patients and to the federally funded seniors? (Show your work by tabulating appropriate columns for TRandTC,as well as forMRandMC.)
b. What would the number of paying patientsandfederally funded seniors be if the federal funding agency raised its rate to $120 per treatment?
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