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Health insurance companies in a country decided to introduce pre-authorization review of hospital admissions, i.e., all hospital admissions must be pre-authorized and the health care provider must contact the insurance agency to get the approval to admit a patient in a hospital. Managed Care entities introduced this type of review in 1990s and we know that pre-authorization review reduces hospital service utilization. In a diagram, show the impact of pre-authorization review of hospital admissions on hospital care market. If hospital care and outpatient care services are complements of each other, how will this policy-change affect outpatient care market? What will be effect of this hospital admission reviews on the insurance market?
The demand curve for two liter bottles of soda is given by QD=4000-300P, and the supply curve is given by QS=1300P. In an effort to reduce soda consumption, the government has
If she has invested in a stock fund that averaged a 15% rate of return over that period, and she expects to make the same annual investment and get the same performance in t
Why is it possible to have a stable equilibrium with two competitors in the Hotelling model but not three? What we happen if there were four competitors. The usual assumptio
After much research, I have found that Brazils Exchange Rate to the USD has increased and decreased throughout this year however, it has always maintained APPRECIATION while t
A firm's production function is qi = 4*Ki.2Li.4. The wage rate in this area is w = $15, and the cost of capital is r = .05. Find the firm's short run cost function, if Ki is f
An insurer sold 100,000 policies at $6,800 and paid for all care. Ten percent of its customers were high risk ($50,000 in annual spending) and 90 percent were low risk ($500 i
Which of the following statements is true about the short run and the long run? Economists typically refer to the short run as a period of time in which the firm does not have
Consider the forces that led to the Great Depression. In the very short run, the effect of these forces would be _________ in the price level and _________ in real output. Con
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