1 “Newhouse Utility” Please respond to the following:
A.
•Suppose that population growth expands the quality frontier of a Newhouse utility-maximizing nonprofit hospital. Determine what this would mean to the choice of quantity and quality change. Be sure to discuss the implications of this to the public and to the facility.
B.
•Argue the case for a nonprofit facility being a better choice than a profit facility from the facility’s perspective, the consumer’s perspective, and the community’s perspective (even if you do not agree).
2. “Hospitals and Long-Term Care” Please respond to the following:
A. •from the e-Activity, develop a theory that explains why nonprofits dominate the hospital industry while for-profits dominate the nursing home industry.
B. •Informal care provided by children and other family members are good substitutes for long-term care (LTC) for parents. Describe some potential social and demographic changes that may reduce the availability of such informal care, and create a policy recommendation that may take advantage of the substitutability to delay entry of the elderly to LTC facilities.