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Demand For Medical Care
Part I of Essay
The is derived from our demand for good health. Michael Grossman was the first to do econometric research on this topic. “Grossman’s work established two approaches for consideration. In the first, medical care is viewed as an input in the production function for health .... Part II of Essay
.... will also increase the demand. Therefore, who should pay for these increased costs for medical insurance? “Medical care spending is not the only thing that improves health. Other factors affecting health status, such as life-style, environmental pollution, and technological developments, will shift the total product curve (TV).” Figure 4.1, on the next page graphically shows that health status obeys the Law of diminishing productivity. The graph below the total product curve is the marginal product curve. The derivative of the total pr ....
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Words: 1172 - Pages: 5
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