The Purpose of a Cost/benefit Analysis in Relation to Medical

question 2

Multiple Choice

The purpose of a cost/benefit analysis in relation to medical care is to

• A)justify the cost of a treatment as compared to the benefit.
• B)justify only the benefit of a treatment.
• C)provide an estimate of the cost of a treatment.
• D)make sure no one "falls through the cracks" for treatment.

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Definitions:

Elastic Demand

A situation where the demand for a product is sensitive to price changes, meaning small price changes lead to large changes in quantity demanded.

Barriers To Entry

Factors that prevent or hinder new competitors from easily entering an industry or area of business, often maintaining high levels of profit for those already established.

Product Differentiation

The process of distinguishing a product or service from others in the market to make it more attractive to a particular target market.

Monopolistic Competition

A market structure where many firms offer products that are similar but not perfect substitutes, allowing for some degree of market power.