Reference no: EM131298891
This case illustrates imperfect competition. At equilibrium in a perfectly competitive market, price equals marginal cost. If companies were to produce more product or deliver more service beyond equilibrium, then this would be considered inefficient since the value of the additional output would be less than its' cost (Lee, 2015). In an imperfect market, every producer has some level of market power, which allows them to adjust prices to make marginal revenues equal marginal costs. Regulation isn't always a bad thing in that it established rules needed for the market to work; however, regulation cannot replace the market. The involvement of government in establishing regulations that drive down prices contributes to the imperfect market that typifies the healthcare and many other industriesThe student, functioning as an external consultant hired by CMS to revise the competitive bidding process so that it results in lower prices to beneficiaries for public goods; is easier and less expensive to setup and implement; and will likely be less objectionable to medical equipment manufacturers and retailers then previous bidding models. It is expected that the consultant will prepare a formal recommendation. To aid in the development of the recommendation, it would be prudent to art least consider how you would respond to the following questions:
1. What are the risks of a bidding process like the one described in this case?
2. Why would elected representatives side with the manufacturers and retailers on this issue?
3. Suppose that Medicare sought bids for enough cardiac care to serve beneficiaries in your hometown. What would happen economically and politically? Could you design a way of insulating Medicare from political pressure? Would you want to?
4. What problems other than paying too much might distorted fee schedules cause?
In addition, to how you would respond to the above questions, you should reply of outside sources when preparing for recommendation to the leadership team at CMS.
Of the of the key players you identified
: Of the of the key players you identified, pick two (2) - One for the recommendation and one against recommendation. Describe the political influence of each, explaining motives, conflicts, interrelationships, and impacts on the policy.
|
What is the velocity of money
: 1. What is the "velocity of money"? Why is it important to the macro-economy? 2. Why would some households with increases in "household wealth" continue to consume at their prior household level even given household wealth increases? How would..
|
Estimate the value using the linear model
: Estimate this value using the linear model. How do they compare? Repeat for G = 50 and G = 100. What do you conclude?
|
Explain why integral action requires anti-windup
: Assignment CS2 - Control Systems Design and Analysis - What will be the system type number a if PID controller is used on this plant? For zero steady state error (to unity step references) for this plant, is an integrator required in the controller..
|
What are the risks of a bidding process
: 1. What are the risks of a bidding process like the one described in this case? 2. Why would elected representatives side with the manufacturers and retailers on this issue?
|
Examine impact of the pole offset by executing the program
: Examine the impact of the pole offset by executing the program assuming a perfect loop (λ = 0).- How many cycles are slipped by the perfect loop? By how much is the lock time reduced?
|
Calculate the expected value of the low risk project
: Calculate the expected value of the high and low risk project to MarCher Industries' stockholders if the firm remains unlevered. Predict which project the stockholders prefer. Justify your prediction
|
How does game theory explain strategic behavior
: How can economists explain irrational behavior?
|
Estimate the value using the linear model
: Estimate this value, mod(2π), using the linear model. How do they compare? Repeat for λ = 0, λ = 0.05, and λ = 0.2. What do you conclude?
|