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