the total cost of giving this insured service, Managerial Economics

Assignment Help:

The services of a certified psychologist cost $110 per hour, and an extended health plan covers 50 percent of that cost. Under the plan, the clients covered used 625 hours of this service in a typical three-month period. To save money, the extended health plan reduced its coverage to 40 percent of the cost. As a result, the clients covered decrease their use of this service to 482 hours in a typical three-month period.
 
a. Determine the total cost of giving this insured service to the plan before and after the change in coverage.
 

b. Based on the data above, calculate the elasticity of demand for the services of a certified psychologist. Interpret the elasticity of demand, and explain the behaviour of the clients covered based upon this  interpretation.


Related Discussions:- the total cost of giving this insured service

Causes for diseconomies of scale, Q. Causes for diseconomies of scale? ...

Q. Causes for diseconomies of scale? The most significant cause for diseconomies of scale is the diminishing returns to management. As the output grows beyond certain level the

What are the environmental issues factors, Environmental issues factors ...

Environmental issues factors This is governed by the below factors:  The type of economic system of the country Business cycles Industrial policy of the countr

Disadvantages of progressive tax, Disadvantages The effect on ince...

Disadvantages The effect on incentives High  progressive tax makes work and extra effort become less valuable. The effect on the willingness to accept risk

Market structure, what kind of market structure is involved for the sale of...

what kind of market structure is involved for the sale of medicines and vitamins? explain

Disadvantages of barter trade, Disadvantages of Barter Trade It is...

Disadvantages of Barter Trade It is impossible to barter unless A has what B wants, and A wants what B has. This is called double coincidence of wants and is difficult t

Define the natural monopoly, Q. Define the Natural Monopoly? Natural M...

Q. Define the Natural Monopoly? Natural Monopoly: Natural monopoly is because of natural factors. For illustration, a particular raw material is concentrated at a specific pl

Determine net income by product line, Fandem Technology manufactures two pr...

Fandem Technology manufactures two products using a joint process. The cost of materials going into the joint process for a typical period is $55,000, while labour and overhead to

Will you make any profits in the short run, Problem 1: Using relevant e...

Problem 1: Using relevant examples, discuss the pricing strategies that firms can use to capture value from their customers. Problem 2: You are a manager in a perfectl

Models of the firm, discuss the validity in zimbabwe of the grounds on whic...

discuss the validity in zimbabwe of the grounds on which the profit maximising model of the firm has been defended

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd