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Author Question: The RAND Health Insurance experiment compared costs of HMOs with the costs of indemnity insurers. ... (Read 41 times)

DyllonKazuo

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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


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Jadwiga9

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Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

d


DyllonKazuo

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Reply 2 on: Jul 1, 2018
Great answer, keep it coming :)

chereeb

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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