Author Question: The RAND Health Insurance experiment compared costs of HMOs with the costs of indemnity insurers. ... (Read 56 times)

DyllonKazuo · **on:** Jul 1, 2018

The RAND Health Insurance experiment compared costs of HMOs with the costs of indemnity insurers. The study
a. confirmed the cost-saving potential of HMOs.
b. Found no cost-saving by HMOs.
c. the HMO had per capita costs that were 28 lower than the indemnity
d. both a and c

Question 2

Suppose that at current consumption levels an individual's marginal utility of consuming an extra hot dog is 10 whereas the marginal utility of consuming an extra soft drink is 2 . Then the MRS (of soft drinks for hot dogs)that is, the number of hot dogs the individual is willing to give up to get one more soft drink is
a. 5
b. 2
c. 1/2
d. 1/5