Question: Compare the answer to problem 4 with the answer to problem 5 . What does this tell you about the sensitivity of the price to

Compare the answer to problem

4

with the answer to problem

5 .

What does this tell you about the sensitivity of the price to the assumption of the average cost per case? If you were the clinic manager, what would you do before agreeing to the renegotiated contract with managed care plan #

2 ?

Compare the answer to problem 4 with the answer to problem

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