MHA 710 Exam 3 Latest Update
Marginal revenue is the: - ANSWER change in total revenue associated with the sale of
one more unit of output.
You will sell 2,000 units at a price of $150 and 1,800 units at a price of $155. What is the
marginal revenue? - ANSWER 105
Your average and marginal cost is $300. Your price is $500 and you serve 1,000
customers. You predict that you will sell 1,200 at a price of $450. Which of the following
is correct? - ANSWER None of the above.
In the table below, at what price are profits maximized? - ANSWER At a price of $225.
In the following table what is the marginal cost of producing 2,000 visits? - ANSWER
$43.75
In the following table what is the marginal revenue of producing 2,000 visits? - ANSWER
25
The price elasticity of demand for physicians' services is -0.20. Your group controls 10
percent of the market. What price elasticity does your firm face? - ANSWER -2.00
Your firm spent $200,000,000 bringing a new drug to market. Each pill costs $2 to
manufacture. The price elasticity of demand is -3.00. How much should you charge? -
ANSWER 3
Your marginal cost is $10, and you face an elasticity of -5.00. Which price should you
choose to maximize profits? - ANSWER 12.50
, You have 3,000 nonHMO patients and 1,000 HMO members. Your fixed costs are
$50,000 and your marginal cost is $50. If the price elasticity of demand for the nonHMO
patients is -3 and the price elasticity of demand for HMO members is -6, which of the
following is true about the prices you want to charge? ANSWER You would maximize
profits by charging nonHMO patients $75 and HMO members $60.
Which of the following characteristics of health care products makes price
discrimination easy? - ANSWER a. Most health care must be delivered directly to the
customer.
b. Resale is very difficult, in most health care markets.
c. Insurance coverage helps identify the least price sensitive customers.
d. All of the above.******
A system expects to increase bed days by 650 as a result of spending $300,000 for an
advertising campaign. The marketing department estimates that each additional bed
day will generate $2,100 additional revenue and will increase costs by $1,700. The
campaign - ANSWER will decrease profits by $40,000.
Healthcare organizations normally can exert market power - ANSWER a. because they
have few competitors.
b. because many health care products and services are "experience" goods.
c. because regulations limit who can compete with them.
d. All of the above.
A city with three 100-bed hospitals would be described as - ANSWER an oligopoly
market.
Suppose there are two firms in the market, Buckley and Stetler. If they merge, they have
fixed costs of $140,000, marginal costs of $50, and a market share of 6 percent. The
price elasticity of demand for clinic services is -0.22. Suppose the volume of patients at
the profitmaximizing price is 24,600. Based on these estimates, the merged firm's
estimated price elasticity of demand is - ANSWER -3.667
Marginal revenue is the: - ANSWER change in total revenue associated with the sale of
one more unit of output.
You will sell 2,000 units at a price of $150 and 1,800 units at a price of $155. What is the
marginal revenue? - ANSWER 105
Your average and marginal cost is $300. Your price is $500 and you serve 1,000
customers. You predict that you will sell 1,200 at a price of $450. Which of the following
is correct? - ANSWER None of the above.
In the table below, at what price are profits maximized? - ANSWER At a price of $225.
In the following table what is the marginal cost of producing 2,000 visits? - ANSWER
$43.75
In the following table what is the marginal revenue of producing 2,000 visits? - ANSWER
25
The price elasticity of demand for physicians' services is -0.20. Your group controls 10
percent of the market. What price elasticity does your firm face? - ANSWER -2.00
Your firm spent $200,000,000 bringing a new drug to market. Each pill costs $2 to
manufacture. The price elasticity of demand is -3.00. How much should you charge? -
ANSWER 3
Your marginal cost is $10, and you face an elasticity of -5.00. Which price should you
choose to maximize profits? - ANSWER 12.50
, You have 3,000 nonHMO patients and 1,000 HMO members. Your fixed costs are
$50,000 and your marginal cost is $50. If the price elasticity of demand for the nonHMO
patients is -3 and the price elasticity of demand for HMO members is -6, which of the
following is true about the prices you want to charge? ANSWER You would maximize
profits by charging nonHMO patients $75 and HMO members $60.
Which of the following characteristics of health care products makes price
discrimination easy? - ANSWER a. Most health care must be delivered directly to the
customer.
b. Resale is very difficult, in most health care markets.
c. Insurance coverage helps identify the least price sensitive customers.
d. All of the above.******
A system expects to increase bed days by 650 as a result of spending $300,000 for an
advertising campaign. The marketing department estimates that each additional bed
day will generate $2,100 additional revenue and will increase costs by $1,700. The
campaign - ANSWER will decrease profits by $40,000.
Healthcare organizations normally can exert market power - ANSWER a. because they
have few competitors.
b. because many health care products and services are "experience" goods.
c. because regulations limit who can compete with them.
d. All of the above.
A city with three 100-bed hospitals would be described as - ANSWER an oligopoly
market.
Suppose there are two firms in the market, Buckley and Stetler. If they merge, they have
fixed costs of $140,000, marginal costs of $50, and a market share of 6 percent. The
price elasticity of demand for clinic services is -0.22. Suppose the volume of patients at
the profitmaximizing price is 24,600. Based on these estimates, the merged firm's
estimated price elasticity of demand is - ANSWER -3.667
