Question: Additional Problem #3: Physician Treatment Incentives (10 points) Consider a physician deciding whether or not to adopt a new technology that just became available on

 Additional Problem #3: Physician Treatment Incentives (10 points) Consider a physician

deciding whether or not to adopt a new technology that just became

Additional Problem #3: Physician Treatment Incentives (10 points) Consider a physician deciding whether or not to adopt a new technology that just became available on the market. If consumers were fully informed about the effectiveness of the technology, their demand would be: P = 500 - .5Q Assume here that price is the total price of the technology (or what the consumer would pay if uninsured). As a result, also assume that this demand curve reflects the true social benefit of the technology. Also, assume the population has size 1000. Assume that the true social cost of the technology is SC = 300. a) What is the socially optimal quantity of this technology that should be consumed? What is the socially optimal price

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