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1. Under the following conditions, what are the equilibrium price and quantity of health care goods?
There are many health care providers and patients. Calculate the consumer surplus, producer surplus, total costs of care and dead weight loss. [Hint: the total cost of care is the triangular area between marginal cost curve and X axis. In this model the total costs of care is 36=(12*6)/2]
Demand Curve P = 24 – 2Q
Marginal Revenue Curve P = 24 – 4Q
Marginal Cost Curve P = 2Q
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