1.Why have economic analyses of clinical and administrative innovations become m

Question

1.Why have economic analyses of clinical and administrative innovations become more important?
2.A clinic finds that by eliminating appointments it can reduce costs. The clinic is able to eliminate some telephone staff, and physicians become more productive. Patients wait until the physician is available, so there is virtually no down time. Does this analysis adopt a societal view of costs? Why might this analysis result in a bad managerial decision?

3.Treating a patient with congestive heart failure with tPlex rather than Isother increases average life expectancy to 12.3 years from 11.5 years. The added cost of therapy is $14,000. What is the cost per life year?

4.What does it mean to have market power? Are firms with market power extremely profitable?

5.Why might banning advertising drive up prices?

Explanation / Answer

5) In general, the higher the level of advertising for a good, the higher demand for
that good would be expected, other things being constant. If advertisement is banned , then the demand for the goods is lowered. Now the firm has to increase the prices of the goods to maintain its profitability . Otherwise the firm will incur loss. Therefore , banning advertisement will drive up the prices.

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.