Calculate the deadweight loss

Assignment Help Business Economics

Reference no: EM131194665

Suppose the marginal social cost of providing health care to a person is given by the equation 20+4Q. An individual’s marginal benefit of health care is 300-Q. This individual has an insurance policy that stipulates that the person will pay 25% coinsurance OOP. That is, the recipient of the care will pay 25% of the MSC.

a. Solve for the optimal level of consumption and price of health care for this society.

b. Solve for the private market equilibrium level of health care. What is the social cost for the last unit at this level? (May not be round numbers.)

c. Calculate the deadweight loss.

d. What are the total OOP costs for this individual?

Reference no: EM131194665

Questions Cloud

What was the angle of the seal''s path below the horizontal : Weddell seals foraging in open water dive toward the ocean bottom by swimming forward in a straight-line path tipped below the horizontal. The tracking data for one seal showed it taking 4.0 min to descend 360 m below the surface while moving 920 ..

Educational achievement help to explain income inequality : "Does educational achievement help to explain income inequality?" Instructions: Explain the problem of topic to be researched. Mention the importance of your research as what it would contribute to the literature?

Discuss the essential strategies that wills should employ : Analyze the key reasons why Calvin should have a will, and discuss the essential strategies that he should employ in order to create one. Provide a rationale for your response.

Calculate descriptive statistics : Calculate descriptive statistics. Using the "split file function" compare groups by condition and gender. Run an analysis of the data sets descriptive statistics

Calculate the deadweight loss : Suppose the marginal social cost of providing health care to a person is given by the equation 20+4Q. An individual’s marginal benefit of health care is 300-Q. This individual has an insurance policy that stipulates that the person will pay 25% coins..

Describe economic factors that can influence government : Describe the economic factors that can influence the government choice between a general subsidy ( on all factors of production) and a specific subsidy (i.e. one factor of production) that involves the same level of expenditure.

How many fields does shuttle cover in blink of an eye : The Space Shuttle travels at a speed of about 7.02E+3 m/s. The blink of an astronaut's eye lasts about 101 ms. How many football fields (length = 91.4 m) does the Shuttle cover in the blink of an eye?

Give a well labeled diagram of the strain gauge : Examples of element characteristics:- Strain gauge. - Copper-constantant. thermocouple. - Accelerometer. - Give a well labeled diagram of the above.

Forgive the debt of under-developed nations : There are many who propose that the west should ‘forgive’ the debt of under-developed nations, including some celebrities, some politicians, and even some economists. Find at least one article that makes the argument that these debts should be forgiv..

User Account

All Pages