When Cody went to the physician with a sore elbow, after hearing Cody's symptoms and examining the elbow manually, Cody's physician had two options: (1) prescribe an anti-inflammatory drug and advise Cody to abstain from vigorous physical activity for a period; or (2) advise Cody to undergo a magnetic resonance imaging (MRI) exam, a costly diagnostic procedure. Which of the following physicians is more likely to recommend option 1?

A. A physician who is not concerned about the marginal cost of an MRI.
B. A physician who is part of an HMO.
C. All physicians would recommend option 1.
D. A physician who is compensated under a conventional health insurance plan.


Answer: B

Economics

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