In Table 12.4, the market penetration for managed care rises from 40 percent to 50 percent between

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In Table 12.4, the market penetration for managed care rises from 40 percent to 50 percent between Periods 1 and 2 and stays at 50 percent. Suppose, instead, that it fell from 40 percent to 30 percent and stayed at 30 percent.

(a) What would happen to total costs and to rates of cost increase?

(b) How do your results compare to the discussion regarding Table 12.4? Why?

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The Economics Of Health And Health Care

ISBN: 9781138208049

8th Edition

Authors: Sherman Folland, Allen C. Goodman, Miron Stano

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Question Posted: Jan 29, 2024 03:05 AM

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In Table 12.4, the market penetration for managed care rises from 40 percent to 50 percent between

Question:

Price Firm total revenue (TR) with no entry Firm total revenue (TR) after entry P2 TR TR MC D D2 MR2 MR 0 Q2 Q Quantity Figure 12.4 Impact of Entry of Alternative Providers into a Monopolistic Market

Step by Step Answer:

a In Period 2 total costs per period would rise from 1600 per person to 07 2...View the full answer

The Economics Of Health And Health Care

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