My friend, who is a physician, was asked by a friend of his "...at what level of vision do you do a cataract operation?" And he said "Well, if there's one ophthalmologist in town, then its 20/200. If there are two ophthalmologists in town then its 20/80. If there are three ophthalmologists in town, then it's 20/40." Based on this conversation, what are the implications for health policy?
Indicate whether the following statement is true/false/uncertain. Explain your answer. The uncertain nature of need for health care is one of the primary reasons some health economists argue that we should not interpret the area under the demand curve for health care as representing the value of health care to an individual.