Capitation
a. creates pressures to provide fewer services.
b. is a fixed payment determined in advance to pay for all medically-necessary care.
c. is the maximum allowable fee in a fee-for-service system.
d. shifts financial risk onto patients.
e. Both a and b are correct.
E
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According to the Coase approach, to achieve socially optimal outcome, two sides must bargain. The bargaining might not be successful because
A) transaction costs are ignorable. B) firms engage in strategic bargaining. C) both sides have perfect information. D) None of the above.
If external benefits are taken into account in the market
A) the demand curve would shift to the left. B) the supply curve would shift to the left. C) the demand curve would shift to the right. D) the supply curve would become vertical.