Phase 1 - Intro to Economic Thinking
Phase 1 - Intro to Economic Thinking
ECON202-1302A-02: Microeconomics
Colorado Technical University
Joseph Keller
4/14/13
As prices increase, should health economists advocate giving something up (opportunity costs/trade-offs)? I feel that health economists should promote giving something up in as prices rise. The reason I feel this way is because as the prices increase a lot of people would not be able to pay for the services .So in this case I believe that they should consider lowering the prices, this in return should encourage people to continue to receive the services. The tradeoff probably would be lowering the salaries of some of the health providers.
As the quantity of health services provided goes up, does the benefit of each additional unit of service become smaller (marginal analysis)? If the number of services goes up the benefit of each service would become smaller, because using marginal analysis every addition is considered less value. So if you use marginal analysis it will help you figure if generating different services will benefit your company (Cliff 's Notes, 2013).
Discuss the issue of health care in the context of the following microeconomic concepts:
Marginal analysis Marginal analysis in the health care industry for example would be if you were spending $1000 for 5 units of health service, sold in $200 increments, marginal analysis would work like this, if you were to buy another $200 you would get 1/2 units, if you bought another $200 you would gain 1/4more ,another 1/8 . So as you can see you could get to a point were buying more units would work negatively because you would no longer be gaining anything (Cliff 's Notes, 2013).
Trade-offs /Opportunity costs Trade-off in the industry would be if a facility badly needed to add another unit, the trade of could be to lower some of the workers’ salaries in order to compensate for that extra money being spent. The opportunity cost is the money lost from
ECON202-1302A-02: Microeconomics
Colorado Technical University
Joseph Keller
4/14/13
As prices increase, should health economists advocate giving something up (opportunity costs/trade-offs)? I feel that health economists should promote giving something up in as prices rise. The reason I feel this way is because as the prices increase a lot of people would not be able to pay for the services .So in this case I believe that they should consider lowering the prices, this in return should encourage people to continue to receive the services. The tradeoff probably would be lowering the salaries of some of the health providers.
As the quantity of health services provided goes up, does the benefit of each additional unit of service become smaller (marginal analysis)? If the number of services goes up the benefit of each service would become smaller, because using marginal analysis every addition is considered less value. So if you use marginal analysis it will help you figure if generating different services will benefit your company (Cliff 's Notes, 2013).
Discuss the issue of health care in the context of the following microeconomic concepts:
Marginal analysis Marginal analysis in the health care industry for example would be if you were spending $1000 for 5 units of health service, sold in $200 increments, marginal analysis would work like this, if you were to buy another $200 you would get 1/2 units, if you bought another $200 you would gain 1/4more ,another 1/8 . So as you can see you could get to a point were buying more units would work negatively because you would no longer be gaining anything (Cliff 's Notes, 2013).
Trade-offs /Opportunity costs Trade-off in the industry would be if a facility badly needed to add another unit, the trade of could be to lower some of the workers’ salaries in order to compensate for that extra money being spent. The opportunity cost is the money lost from
References: Cliff 's Notes. (2013, April 14). Economic analysis. Retrieved from http://www.cliffsnotes.com/study_guide/Economic-Analysis.topicArticleId-9789,articleId- 9726. html Hubbard, G & O’brien, T. (2013). Microeconomics. Upper Saddle River, NJ: Pearson Education, Inc