Moving to another question will save this response.Question 8High litigation costs for the Plaintiff (Victim) and Defendant (Injurer)O A. encourage too little precaution because the Injurers know that the litigation costs will discourage Victims from suingB. encourage too much precaution because the Injurers wish to avoid the high costs of litigationOC. either A or B could be correctOD. None of the above are correctQu2 poi

The correct answer is A. encourage too little precaution because the Injurers know that the…

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Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter20: The Problem Of Adverse Selection Moral Hazard

Section: Chapter Questions

Problem 3MC

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For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amountof $21,313.50. Outlier threshold for Medicare is $25,800.(a) John admitted hospital A for pancreas transplant. The charges for John'streatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How muchpayment hospital A would get from Medicare?(b) Bryan admitted hospital B for pancreas transplant. The charges for Bryan'streatment was same as John, $128,000, but cost to charge ratio for Hospital Bwas 0.25. How much payment hospital B would get from Medicare?
Table 1 Injurer Victim Care Injurer Care Victim Prob of Accident Care Cost Care Cost WyX, p(x1,x,) None None 15% None Care 12% Care None 10% Care Care 3 2 6% a) Is this a situation of unilateral precaution or bilateral precaution? Assume that the harm caused by each accident (denoted by A in class) is equal to 2. b) Given the information in Table 1, fill in the values in the empty cells of Table 2 Table 2: Injurer care Victim's care Expected harm from Total expected social accident costs p(x,Xu)A None None None Care Care None Care Care
For Pancreas Transplant, DRG code is 010. For DRG 010, Medicare pays fixed amount of $21,313.50. Outlier threshold for Medicare is $25,800. (a) John admitted hospital A for pancreas transplant. The charges for John’s treatment was 128,000. Cost to charge ratio for Hospital A was 0.10. How much payment hospital A would get from Medicare? (b) Bryan admitted hospital B for pancreas transplant. The charges for Bryan’s treatment was same as John, $128,000, but cost to charge ratio for Hospital B was 0.25. How much payment hospital B would get from Medicare?
46. Consider the information concerning the costs and QALYS for various treatments for cancer that is presented in the table below. Which of the treatments is/are dominated? Cost per QALYS Gained Cancer Treatment Treatment 200 400 10 500 12 K 600 6. 700 14 Oa.G. O b. H. OCK OdL Oe None of the above
this is data.. do this. dont need refernece of Q1 Data: 8 27 24 25 11 18 22 28 21 11
8) Three decision makers have assessed utilities for the problem whose payoff table appearsbelow.s1 s2 s3d1 500 100 -400d2 200 150 100d3 -100 200 300probability.2 .6 .2Indifference Probability for PersonPayoff A B C300 .95 .68 .45200 .94 .64 .32150 .91 .62 .28100 .89 .60 .22-100 .75 .45 .10a. Plot the utility function for each decision maker.b. Characterize each decision maker's attitude toward risk.c. Which decision will each person prefer?
Why is there asymmetric information in the labor market? What signals can an employer look for that might indicate file traits they are seeking in a new employee?
What is the problem of moral hazard?
I need help with 12, 13, and 14
Which of he following stalements about lhe Time Limil on Certain Defenses provision in an Accident and Heallh policy is CORRECT? A.It specifies the period of time after which an insurance company can deny a claim on he basis of the claim having pre-existed before the effective dale of coverage. B.It specifies the period of lime during which the insured must submit Proof of Loss. C.It prohibits legal actions against the insurance company after a specified period of time. D.It prevents an insurance company from maki any changes to a policy after il is issued.
QUESTION 1 A delegation transfers contract duties, but the delegator remains liable for proper performance. O True O False QUESTION 2 Generally, if an agreement is completely executory, the minor's failure to act after reaching the age of majority is considered disaffirmance. O True O False QUESTION 3 When a minor misrepresents their age, all jurisdictions will allow a minor to disaffirm the contract even if they cannot return the consideration that they received. O True O False QUESTION 4 The obligee is the person to whom a contractual duty is owed. O True O False QUESTION 5 The party to whom rights under a contract are transferred is called the obligor. O True O False
Question 19 An award of punitive damages will encourage the efficient level of precaution when O the injurers behavior is egregious O the courts, on average, fail to award damages for the full amount of harm caused O jurors exercise hindsight bias there is a no liability rule

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