ECON256 Study Guide - Midterm Guide: Profit Maximization, Physician Supply, Perfect Competition

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rosemouse67

19 Nov 2017

School

University of Waterloo

Department

Economics

Course

ECON256

Professor

Emmanuelle Pierard

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Document Summary

The e(cid:272)o(cid:374)o(cid:373)i(cid:272)s of health (cid:272)are deli(cid:448)ery i(cid:374)(cid:448)ol(cid:448)es studyi(cid:374)g the (cid:272)o(cid:374)(cid:272)ept of (cid:862)the fir(cid:373)(cid:863) as it applies to the supply of goods and services in the health care sector. Assumed to pursue a single objective (maximize profits) and operate in a perfectly competitive market. Physicians have considerable market power, due to informational asymmetries and regulatory structures. The pharmaceutical sector is one of the most profitable industries in the world, with a small number of international producers, and hold monopoly through patents. In the context of health care delivery, we use the terms public and private. Public: services provided by employees of an organization owned by a local, regional, provincial or federal government. Rationale based on the view of providing equitable services. Private: services delivered by employees of an organization with private-sector owners (limited-liability firms, partnerships, etc). Rationale based on the belief of greater efficiency. Three profit types for delivery of health care are:

Related Questions

Question 1: Answer the following MC questions...

a).

Samuel F.B. Morse patented the (5 points)

A.	telegraph
B.	automobile
C.	audio recorder
D.	radio transmitter

b).

Your friend wants to open a clothing shop. A necessary capital resource is a (5 points)

	A. place to open the shop
	B. knowledgeable fashion manager
	C. license to conduct business
	D.highway billboard for advertising

c).

Jessica is a violinist who believes she can extend her method of learning music to early childhood education. She opens a preschool in her hometown, using her expertise to form an arts-based program. What factor of production is this? (5 points)

	A. Capital
	B. Entrepreneurship
	C. Labor
	D. Land

d).

Your friend hopes to expand her business to multiple locations. It would be best for her to create a (5 points)

	A. limited liability company
	B. sole proprietorship
	C. corporation
	D. partnership

e).

Root and Vine is a gardening collective and local delivery service started by two friends. Their clientele has grown, and they want to expand. The owners like the idea of protecting their personal property, but they want to maintain control of the business. Which type of organization might best suit their growth? (5 points)

	A. Sole proprietorship
	B. Partnership
	C. Limited liability company
	D. Corporation

f).

An oligopoly is a market for a good or service that (5 points)

	A. has few competitive firms
	B. is perfectly competitive
	C. has one buyer
	D. has one seller

g).

The greatest goal in advertising is to convince us (5 points)

	A. "wants" are unnecessary
	B. the firm has the best price
	C. a particular product is a "need"
	D. the product is the same as other firm's products

h).

"Don't be like John, who had no health insurance when he needed emergency surgery. We make health insurance easy and affordable." This advertisement targets your (5 points)

	A. fears
	B. rituals
	C. emotions
	D. social values

i).

Why do monopolies and oligarchies benefit producers over consumers? (5 points)

	A. Companies control price through demand.
	B. Competition is driven by factors other than price.
	C. Demand influences production more when competition is less.
	D. Few producers can generally control prices.

ECON256 Study Guide - Midterm Guide: Profit Maximization, Physician Supply, Perfect Competition

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