The theory of cost shifting is often used as the basis for public policy proposals. Some...

60.1K

Verified Solution

Question

General Management

The theory of cost shifting is often used as the basis forpublic policy proposals. Some believe that the increase in increasepremiums is due to cost shifting. This will be the topic of thisweek’s paper. Briefly discuss what cost-shifting is. Discuss the 4points associated with determining the profit-maximizing price. Whydo private purchasers claim that they are being charged more tomake up for lower prices paid by the government? What are some ofthe conditions under which cost shifting can occur? Based on yourresearch, do you feel that cost-shifting is occurring?

Answer & Explanation Solved by verified expert

4.4 Ratings (854 Votes)

This post does stand on its possess nevertheless In it Illdiscuss a idea of hospitals underneath which cost transferring canarise though conception alone cant inform us the fee shift priceKeep in mind that thought does now not replicate the entirerichness of reality Its intended to present us some instinct inregards to the world whilst keeping off the insurmountablechallenges in precisely representing itAll figures and prices beneath are from David Cutlers 1998paper cost transferring or price reducing the incidence ofdiscounts in Medicare repayments As far as i know its the onepaper on fee shifting that presents a graphical theoreticaltreatment under utility not profit maximizationImagine a clinic that uses anything profits it chooses togenerate to subsidize unprofitable movements corresponding to takecare of the uninsured instructing research or other investmentsThe medical institution goal is not to maximize earnings howeverto maximize some thing else generically termed utility A performthat characterizes utility can comprise revenue of path howeverit must also include other hobbies unprofitable stuff tooBear in mind the following figure for which fee on thehorizontal axis is See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member