The Table Gives Supply and Demand Data for a Certain

question 276

Multiple Choice

The table gives supply and demand data for a certain elective surgical procedure. If suppliers provide the quantity of health care demanded and insurance pays one-third of the equilibrium price, there would be a resulting allocative

• A)efficiency because, at 7,000 units, the marginal cost to society of $3,000 equals the marginal benefit of $3,000.
• B)efficiency because, at 12,000 units, the marginal cost to society is $4,000 and the marginal benefit is $1,000.
• C)inefficiency because, at 12,000 units, the marginal cost to society is $5,000 and the marginal benefit is $2,000.
• D)inefficiency because, at 12,000 units, the marginal cost to society is $2,000 and the marginal benefit is $5,000.

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Definitions:

Hemicolectomy

A surgical procedure that involves the removal of one half of the colon, often due to cancer or disease.

Incentive Spirometer

A device used to help patients improve the functioning of their lungs by encouraging deep breathing.

Medical-Surgical Unit

A hospital division that specializes in providing care for patients who require medical treatment or surgery.

Blood Glucose Monitoring

The practice of regularly checking the levels of glucose in the blood, essential for managing conditions like diabetes.