Your pharmacy provides services to medicare and ppo, Business Economics

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Your pharmacy provides services to medicare and ppo

Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of demand of -2.2 for Medicare patients and -5.3 for PPO patients. Your marginal and average cost for dispensing a prescription is $2. What is the profit-maximizing dispensing fee for Medicare and PPO patients? Why might the price elasticities of demand differ?

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Business Economics: Your pharmacy provides services to medicare and ppo

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Business Economics: Your pharmacy provides services to medicare and ppo

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