When Cody went to the physician with a sore elbow, after hearing Cody's symptoms and examining the elbow manually, Cody's physician had two options: (1) prescribe an anti-inflammatory drug and advise Cody to abstain from vigorous physical activity for a period; or (2) advise Cody to undergo a magnetic resonance imaging (MRI) exam, a costly diagnostic procedure. Which of the following physicians is more likely to recommend option 2?
A. A physician who is concerned about the marginal cost of an MRI.
B. All physicians would recommend option 2.
C. A physician who is compensated under a conventional health insurance plan.
D. A physician who is part of an HMO.
Answer: C
Economics
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