-The Figure Above Shows Prakash's and Gail's Production Possibilities Frontiers

question 202

Essay

-The figure above shows Prakash's and Gail's production possibilities frontiers for writing books and magazine articles.
a) What is Prakash's opportunity cost of a book? What is Gail's opportunity cost? Who has the comparative advantage in writing books?
b) Who has the comparative advantage in writing magazine articles?
c) According to their comparative advantages, who should write books and who should write magazine articles?

---

Definitions:

Preauthorization

Prior approval of insurance coverage and necessity of procedure; refers to obtaining plan approval for services prior to the patient receiving them; relates not only to whether the services are covered but also whether the proposed treatment is medically necessary.

Medically Necessary

A term used to describe treatments, services, or supplies needed to diagnose or treat a medical condition, determined by healthcare providers.

Indemnity-Type Insurance

A form of insurance where the insurer compensates the insured for losses in exchange for premiums paid, without providing the service directly.

Referral for Patient Care

The process by which a healthcare provider sends a patient to another specialist or service for further examination or treatment.