A. 300 Words each question with 1 reference each, total 600 words
1. The Pareto efficiency is a simple idea, but it is difficult to achieve. Why is this? Provide an example from outside your textbook.
2. Describe perfect competition as it relates to health care economics. What are the key characteristics? Does perfect competition provide an advantage or disadvantage to the consumer? To the health care provider/organization? Provide an example of perfect competition within health care.
Pareto efficiency in healthcare is a situation where any change would make at least an individual worse off than they currently are. Pareto efficiency can be attained as competitive equilibrium by effectively distributing goods. The economic reality in healthcare is that most hospitals operate in imperfect markets. The use of telemedicine is the only solution for driving down prices and creating perfect competition in the process. With the prices down, organizations will have no option but to provide high-quality care.