health care economics


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health care economics 1 answer below » Health Care Economics Assignment 2 Instructions It contains 12 questions in all. Prepare written responses to all questions. Although your responses should be concise, ensure that you answer all portions of each question as completely as possible. Questions 1. Given a supply curve for ultrasound clinics, predict how the supply curve will shift (i.e., increase or decrease) in each of the following situations (justify your prediction in each case). a. The technology used for ultrasound equipment has a breakthrough that dramatically lowers the cost of theultrasound machine. b. The wages of the View complete question » Health Care Economics Assignment 2 Instructions It contains 12 questions in all. Prepare written responses to all questions. Although your responses should be concise, ensure that you answer all portions of each question as completely as possible. Questions 1. Given a supply curve for ultrasound clinics, predict how the supply curve will shift (i.e., increase or decrease) in each of the following situations (justify your prediction in each case). a. The technology used for ultrasound equipment has a breakthrough that dramatically lowers the cost of theultrasound machine. b. The wages of the clinic’s support staff are increased. c. New ultrasound equipment reduces patient examination times. d. Local utility rates increase. 2. Predict the impact on the supply and/or demand for physiotherapy services in each of the situations described below. In each case, draw a graph that includes an original supply and demand curve as well as the new, predicted supply or demand curve. Note: You are not required tosubmitthe graphs; however, you must indicate the supply and/or demand curve shifts, the direction of each shift, and the predicted changes in equilibrium price and quantity (increase, decrease, or indeterminate). a. Physiotherapy services are covered less generously by provincialhealth plansthan previously. b. Physiotherapy professional associations significantly raise their entrance standards. c. An aging population incurs more muscle and joint injuries that require physiotherapy treatments. d. Events b. and c. occur simultaneously. 3. You are the manager of a health clinic that is located in a building owned by four physician partners. The clinic owners hire all the clinic staff, including doctors, nurses, lab technicians, and office staff. a. Based on what you have learned in the context of this course, identify and discuss the decisions that would need to be made in order to efficiently operate this clinic in both the short run and the long run. b. Discuss and classify the clinic input costs—fixed inputs and variable inputs—in the short run. Provide specific examples of both types of inputs. 4. Economic theory suggests that as plant size increases, the average cost of production should fall. However, when examining the operation of large health and medical facilities, the opposite is often the case. Identify and discuss at least two factors that may contribute to diseconomies of scale in the operation of a large urban hospital. 5. Given a demand curve for a drug that reduces thejoint painassociated with arthritis, what effect would each of the following circumstances have on the demand or the quantity demanded of this drug? In each case, explain why you have predicted such a change. a. An increase in the percentage copayment of insurance coverage, which raises the out-of-pocket price for the drug for the insured client. b. A reduction in fees charged by chiropractors, which lowers the out-of-pocket price for chiropractic services, which are a substitute treatment for prescribing medication. c. An aging of the population—more elderly people are experiencing joint pain. d. A new TV advertisement convinces people that this drug is extremely effective in reducing the joint discomfort associated with arthritis. 6. Improved Access (IA ), a local charity devoted to helping in…

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