What assumptions of the perfectly competitive marketplace are violated in medical markets? How does each affect equilibrium price and quantity? 2. One of the significant problems in medical care markets may be the information problem. Asymmetric information has led to two important defects in the medical marketplace. What are they? How do these defects affect medical markets?

EBK HEALTH ECONOMICS AND POLICY
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ISBN:9781337668279
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Chapter6: Population Health
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1. What assumptions of the perfectly competitive marketplace are violated in medical markets? How does each affect equilibrium price and quantity?

2. One of the significant problems in medical care markets may be the information
problem. Asymmetric information has led to two important defects in the medical
marketplace. What are they? How do these defects affect medical markets?

3. Explain how market failure can be used to justify government intervention in medical care markets.
4. What are the three areas objectively used to evaluate the effectiveness of medical care delivery? Why are they important?

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