MHA 710 - HEALTHCARE ECONOMICS - EXAM 3 WITH COMPLETE SOLUTIONS

MHA 710 - HEALTHCARE ECONOMICS - EXAM 3 WITH COMPLETE SOLUTIONS
Question 1: In order to be a successful price
discriminator, a provider must have a degree of market
power (depicted by a downward-sloping demand curve)
and meet what other condition(s)?
a. Customers cannot know that different prices are being
charged.
b. Markets must be segmentable, identifying differences
in ability to pay.
c. Demand for services must be relatively price elastic.
d. Profitable service expansion opportunities must be
limited.
e. The provider must have excess capacity to
accommodate the extra business.
CORRECT ANSWER: b. Markets must be
segmentable, identifying differences in ability to pay.

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