Figure 11-4
Physicians have two types of patients: private patients who pay directly or with insurance, and Medicaid patients whose care is paid for by the state. Physicians must lower prices to attract more private patients, but they can add unlimited Medicaid patients at a constant price. The situation facing Dr. Casey is depicted in Figure 11-4. Units of medical service (say, number of patients × number of visits) are measured on the horizontal axis. How many units of medical service will Dr. Casey deliver?
a.
OA
b.
OB
c.
OC
d.
OD
c
You might also like to view...
Uniform standards
a. are not relevant to mobile source controls b. refer to standards that remain the same over time c. have been shown to be more costly than a two-tiered standard on motor vehicles d. achieve an allocatively efficient outcome
Recall the Application. In response to the financial crisis, the Fed implemented a new policy in which it began to pay interest on deposits held at the Fed
This move would ________ deposits held at the Fed and ________ the Fed's ability to make loans. A) increase; decrease B) decrease; decrease C) increase; increase D) decrease; increase
When is the profit a firm earns equal to the producer surplus? Explain
What will be an ideal response?
What three factors did Keynes identify that affect consumption expenditures?
a. Disposable income, expected future income, and wealth or credit b. Total income, expected future income, and wealth or credit c. Disposable income, inflation rate, and wealth or credit d. Total income, expected future income, and inflation rate