.How will each of the following affect the supply for insurance:6
Nurses are used by the clinic to provide clinic visits. Each
visit brings in $2 in revenue for the clinic.
a. a larger pool of insured persons
b. lower administration costs for insurance companies
c. higher premiums (with no change in risk experience)
d. a greater degree of risk aversion on the part of insurers
Ch-11
8.The following is a labor supply function:
Wage per
hour
Quantity of Nurse Supplied
$2
1
4
2
6
3
8
4
10
5
12
6
Nurses are used by the clinic to provide clinic visits. Each
visit brings in $2 in revenue for the clinic. The relationship
between nursing units and clinic visits is as follows:
Quantity of
Nurses
Total Clinic Visits
1
5
2
9
3
12
4
14
5
15
The provider is assumed to maximize profits. Determine the
providers equilibrium wage and how many nursing units it will
hire. The provider is a monopsonist, which means it is the sole
purchaser of labor in the market.
Ch-12
12.Given the following MV information, what is the optimal
allocation of care according to the Paretean criteria, when the
marginal cost of care is constant at $100.
Person
A
Person B
Quantity of care
consumedMV
Quantity of care consumedMV
1
$2001
$150
2
180
2
120
3
162
3
92
4
146
4
66
5
134
5
42
6
122
6
20
7
112 7
0
8
104
8
0
9
98
9
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