Question

Consider a firm with a given sized production facility as described by its existing cost curves.
a. Explain what would happen to those cost curves if a mandatory health insurance program is imposed on all firms.
b. Suppose the plan requires a firm to provide a health insurance program for each employee worth 10 percent of the employee’s salary.
c. How would that plan compare to one that requires each firm to provide a $100,000 group program that would cover all employees in the firm no matter the number of employees?



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  • CreatedSeptember 27, 2014
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