Assume an initial equilibrium at D1 and S1 with a price of $1.20 million per machine. If the
government places a $100,000 excise tax on each new scanner sold, the new equilibrium price
will be: - answer✔less than $1.30 million.
Suppose robotic technology improves the results of abdominal surgery—less time to perform the
surgery, faster recovery times, and fewer mistakes. What is the impact on the market for
abdominal surgery using this new technology? - answer✔Demand for robot-assisted surgery will
increase, & prices will rise.
If a hospital is experiencing economies of scale: - answer✔Its average cost curve is negatively
sloped as output increases.
Which of the following does NOT contribute to wasteful spending in medical care? -
answer✔Price transparency.
Which of the following statements is based on positive analysis? - answer✔High health care
prices are one of the primary reasons that the United States spends more on medical care than
other countries.
Which of the following is NOT considered to be a factor in the recent slowing of health care
spending? - answer✔Growing U.S. gross domestic product (GDP).
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