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Suppose the government builds and staffs a hospital to provide free medical care. a. What is the opportunity cost of the free medical care? b.

Suppose the government builds and staffs a hospital to provide "free" medical care.

  1. a. What is the opportunity cost of the free medical care?
  2. b. Will individuals over consume health care in this environment?
  3. c. How do you ration the healthcare in this world? What alternative rationing system also exists in countries without free healthcare?

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