Question
Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of demand of -1.2 for Medicare patients and -4.3 for PPO
Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of demand of -1.2 for Medicare patients and -4.3 for PPO patients. Your marginal and average cost for dispensing a prescription is $2. Why might the price elasticities of demand differ? What is the profit-maximizing dispensing fee for Medicare and PPO patients?
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A Textbook Of Mathematical Economics
Authors: Dr Chandrakant Singh
1st Edition
9353140986, 9789353140984
