What is the deadweight loss cause by the insurance policy

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Reference no: EM13154468

Suppose that an individuals demand curve for doctor visits per year is given bye the euqation p=100-25q, where q is the number of doctor visists per year and p is the price per visit. suppose also the that marginal cost of each doctor visit is $50.

How many visist per year would be effiicient? what is the total cost of the efficient number of visits?

What is the Deadweight loss cause by the insurance policy?

what happens to the size of teh deadweight loss if it turn out that the marginal external benefit of visiting the doctor is $50?

Reference no: EM13154468

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