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HMGT435 Health Care Economics Summer 2017 Assignment #2

You are the CEO for a reginal hospital and have a stock of capital equipment and a fixed budget for labor set by the State’s legislature. Assume that this hospital produces only two services: coronary bypass operations and prenatal care for expectant mothers. The following table describe the production probabilities for the hospital in the current fiscal year.
Coronary BypassPrenatal Visits0256252502500050023750750217501000187501250137501500750017500
Calculate
the opportunity costs of increasing the number of coronary bypass operations from 250 to 500 in terms of the number of prenatal visits lost. (5%)
Calculate the opportunity costs of increasing the number of coronary bypass operations from 1000 to 1250 in terms of the number of prenatal visits lost. (5%)
Does this PPF exhibit the law of increasing opportunity costs? (5%)
Suppose the hospital will receive some new surgical equipment that made it much easier to perform bypass operations. What would this change in technology do to the PPF? (Select one figure from the study material file and describe). (5%)

This is the advanced question from Question 1 of the Week 3 Discussion. This figure shows Mary’s individual demand curve for prenatal care visit.
Price (\$)Quantity w/o Copay1000901802703604505406307208109010

Mary intends to visit an obstetrics clinic for prenatal care that charges \$40 per visit. How many times of visits does Mary demand for the prenatal care without the insurance? How much in total would Mary pay for all of the prenatal services if she does not have the insurance? (10%)
Mary is entitled to participate in one of the three health plans. In Plan A, a prenatal visit requires a fixed \$10 of copayment. In Plan B, a prenatal visit requires a fixed \$20 of copayment. In Plan C, a prenatal visit requires a fixed \$30 of copayment. Please open the provided Excel file and play…

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Health-Care-E….docxStudy-Materia….docxCopy-of-Excel….xlsx

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