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  3. 3 30 points based on paulyredisch model analyze the effects...

Question: 3 30 points based on paulyredisch model analyze the effects...

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3. (30 points) Based on Pauly-Redisch model, analyze the effects of the following exogenous changes on the optimal number of physicians on a hospitals medical staff. Use a graph to answer each of the questions. (a) (10 points) an increase in the wage rate of the hospitals employees (b) (10 points) an increase in the number of persons with health insurance coverage in the hospitals market area (c) (10 points) implementation of a fixed dollar subsidy per unit of hospital care by the city government

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