Question

Explain how firms in the health care industry are trying to stifle competition and what the government is doing to prevent them from reaching their objective

Final Exam Questions: Name: 1. Explain how firms in the health care industry are trying to stifle competition and what the government is doing to prevent them from reaching their objective. Then explain the economic rationale behind the firms' action and intervention as well the government Part I A. Luigi's Italian Restaurant has the demand and revenue schedules below. Assume that the marginal costs for Luigi's are as given in the last column of the table. Margina Total Quantit Revenu Revenu Marginal Pricey $26 30 $780 Cost 24 60 1,440 $22 $5 22 90 1,980 18 20 120 2,400 14 18 150 2,700 10 16 180 2,880 14 210 2,940 2 12 240 2,880 10 270 2,7006 10 16 23 31 40 1. Determine the profit maximization output and price and the maximum profit

Answer 1

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