The Wharton School
University of Pennsylvania
HCMG 302, Fall 2013
Guy David
PROBLEM SET 3
Due Wednesday, November 6, 2013
Question 1
Two hospitals compete in a market and deliver homogeneous services. The two hospitals choose their level of
output q1 and

The Wharton School
University of Pennsylvania
HCMG 302, Fall 2013
Guy David
PROBLEM SET 2
Due Wednesday, October 16, 2013
Question 1
An orthopedist has the following utility function,
U m Q0 I 2 Q0 I
2
Where m is the price of knee surgery, Q0 is the idea

The Wharton School
University of Pennsylvania
HCMG 302-402 / Econ 236-402, Fall 2012
Guy David
FINAL EXAM
December 17, 2012
Name:
Student ID:
- Please provide your name and / or your student ID in the above space.
- You have two hours to complete the exam

The Wharton School
HCMG 302, Fall 2013
University of Pennsylvania
Guy David
PROBLEM SET 1
Due October 2, 2013
Question 1
The table below contains fictional data on prices and quantities for three years (2003, 2007 and
2011), for various medical commoditie

HCMG 302
Fall 2013
PROBLEM SET 1: ANSWER KEY
October 9, 2013
1. (a) The growth rate in health care expenditures is calculated by the following formula:
Expend final Expend initial
r
Expend initial
Between 2003 and 2007, the growth rate was 54.5%. Between

ECON-236/HCMG-302
October 16, 2013
PROBLEM SET 2: ANSWER KEY
1) U = m (Q0 + I ) 2 Q0 (I )2
a. Q0 = 800
m = $160
= 0.002
FOC: [I]
m 4I Q0 = 0
m
I=
4 Q0
160
I=
= 25
4(0.002)(800)
b. I =
m
90
=
= 14.1
4 Q0 4(0.002)(800)
2
c. U = 90 (800 + 14.1) 2(0.002 )(80