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Health Economics, Supply (Supply Curve (output (x) vs price (y), marginal…
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Supply
Supply Curve
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shift: change in input, change in cost for input (cost for supply)
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Economy of scale
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output increases, while cost per unit decreases
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Diseconomy of scale
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output increases, average cost per unit increases
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Long run
no fixed inputs, entry & exit free
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Market
Monopoly
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output down, price up (compared to competitive market)
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Market Failure
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Consumer moral hazard
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interventions
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introduction: co-payments, deductible, user fee
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Excess supply -> Price down, demand up, supply down
Excess demand -> Price up, demand down, supply up
Demand
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Demand Curve
Shift with
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complementary cost (time, transport)
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