health care economics . Given a supply curve for ultrasound clinics, predict how the supply curve… 1 answer below »

health care economics

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. Given a supply curve for ultrasound clinics, predict how the supply curve will shift (i.e., increase or decrease) in each of the following situations (justify your prediction in each case).

a. The technology used for ultrasound equipment has a breakthrough that dramatically lowers the cost of the ultrasound machine.

b. The wages of the clinic’s support staff are increased.

c. New ultrasound equipment reduces patient examination times.

d. Local utility rates increase.

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1. Given a supply curve for ultrasound clinics, predict how the supply curve will shift (i.e., increase or decrease) in each of the following situations (justify your prediction in each case).
a. The technology used for ultrasound equipment has a breakthrough that dramatically lowers the cost of the ultrasound machine.
b. The wages of the clinic’s support staff are increased.
c. New ultrasound equipment reduces patient examination times.
d. Local utility rates increase.
2. Predict the impact on the supply and/or demand for physiotherapy services in each of the situations described below. In each case, draw a graph that includes an original supply and demand curve as well as the new, predicted supply or demand curve. Note: You are not required to submit the graphs; however, you must indicate the supply and/or demand curve shifts, the direction of each shift, and the predicted changes in equilibrium price and quantity (increase, decrease, or indeterminate).
a. Physiotherapy services are covered less generously by provincial health plans than previously.
 
b. Physiotherapy professional associations significantly raise their entrance standards.
c. An aging population incurs more muscle and joint injuries that require physiotherapy treatments.
d. Events b. and c. occur simultaneously.
3. You are the manager of a health clinic that is located in a building owned by four physician partners. The clinic owners hire all the clinic staff, including doctors, nurses, lab technicians, and office staff.
a. Based on what you have learned in the context of this course, identify and discuss the decisions that would need to be made in order to efficiently operate this clinic in both the short run and the long run.
 
b. Discuss and classify the clinic input costs—fixed inputs and variable inputs—in the short run. Provide specific examples of both types of inputs.
 
4. Economic theory suggests that as plant size increases, the average cost of production should fall. However, when…

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