Table 10-4 Shakti Inc

question 3

Multiple Choice

Table 10-4
$\begin{array}{|c|c|c|}\hline \begin{array}{c}\text { Price per } \\\text { Dose }\end{array} & \begin{array}{c}\text { Quantity Demanded } \\\text { (dose) }\end{array} & \begin{array}{c}\text { Total Cost of } \\\text { Production } \\\text { (dollars) }\end{array} \\\hline \$ 80 & 0 & \$ 80 \\\hline 72 & 1 & 82 \\\hline 64 & 2 & 88 \\\hline 56 & 3 & 100 \\\hline 48 & 4 & 124 \\\hline 40 & 5 & 164 \\\hline 32 & 6 & 208 \\\hline 24 & 7 & 268 \\\hline 16 & 8 & 340 \\\hline\end{array}$ Shakti Inc. has been granted a patent for its Arnica toothache balm. Table 10-4 shows the demand and the total cost schedule for the firm.
-Refer to Table 10-4.What is the economically efficient output level?

• A) 5 units
• B) 6 units
• C) 7 units
• D) 8 units

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Definitions:

Mental Health Parity

The principle that insurance benefits for mental health conditions should be equal to benefits for physical health conditions.

Addiction Equity Act

A law aiming to ensure that insurance coverage for mental health and substance use disorder is no less favorable than coverage for physical health conditions.

Insurance Reimbursement Limitations

Restrictions or caps placed by insurance companies on the amount they will pay for certain medical services or treatments.

Patient Problem Areas

Pertains to the specific issues or conditions that a patient is experiencing which require medical or psychological attention.