PPD 170 - Quiz #3 Answers

PPD 170 - Quiz #3 Answers - PPH122/PPD 170 Spring 2008 Quiz...

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PPH122/PPD 170 Spring 2008 Quiz 3 Name______________________ Student ID__________________ 1) a) List 3 factors that are different for competitive and monopoly markets Many sellers vs. one, lower prices, higher quantities consumed and higher quality in competition, free entry in competition, higher efficiency in competition b) Why are competitive markets preferred to monopoly? In competitive markets we have lower prices with higher quantities consumed and at higher quality compared to monopoly. Thus more people are able to increase their utility by having higher consumption. 2) a) The number of physicians per capita (choose one) is about the same in all areas of the country has been about the same since the 1950s can be influenced by immigration policies does not affect the use of medical care and expenditures b) Physicians are able to induce demand because (choose one) medical care is very expensive all patients believe everything the physician tells them asymmetric information 1
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This note was uploaded on 06/02/2008 for the course POLICY, PL 170/122 taught by Professor Mukamel during the Spring '08 term at UC Irvine.

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PPD 170 - Quiz #3 Answers - PPH122/PPD 170 Spring 2008 Quiz...

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