5.1 a. Using a hospital to illustrate your answer, explain the difference between a price setter and a price taker. b. Can most providers be classified strictly as price setters or price takers? 5.2 Explain the essential differences between full-cost pricing and marginal cost pricing strategies. 5.5 a. What is target costing? b. Suppose a hospital were offered a capitation rate for a covered population of $40 per member per month. Briefly explain how target costing would be applied in this situation. 5.9 What are the critical differences in profit analysis when conducted in a capitated environment versus a fee-for-service environment? a. Using a hospital to illustrate your answer, explain the difference between a price setter and a price taker. b. Can most providers be classified strictly as price setters or price takers? 5.2 Explain the essential differences between full-cost pricing and marginal cost pricing strategies. 5.5 a. What is target costing? b. Suppose a hospital were offered a capitation rate for a covered population of $40 per member per month. Briefly explain how target costing would be ap-plied in this situation. 5.9 What are the critical differences in profit analysis when conducted in a capitated environment versus a fee-for-service environment