With health insurance each day in hospital costs arthur 50


The benefit Arthur gets from spending time in hospital following an operation is shown in the table below:

Number of days in hospital

Benefit from hospital stay ($)

0 0

1 500

2 800

3 1000

4 1100

5 1000

With health insurance, each day in hospital costs Arthur $50. Without health insurance, each day in hospital costs him $200. Explain how Arthur should decide how long to spend in hospital following his operation with and without insurance. Explain how having health insurance affects the length of time Arthur chooses to stay in hospital

Solution Preview :

Prepared by a verified Expert
Business Economics: With health insurance each day in hospital costs arthur 50
Reference No:- TGS02713823

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)