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From the e-Activity, analyze at least two (2) primary economic assumptions and examine their short- and long-term impact on promoting the competitive market model in the healthcare environment. Evaluate the fundamental reasons why price and utilization economic factors in the healthcare setting influence competitive market status in regard to supply and demand for health care services. Provide at least one (1) example of such factors to support your response.
•Take a position on whether or not monopolistic competition works within a healthcare setting. Support for your position should include a discussion of the monopoly model being used to predict the allocation of resources in healthcare markets within preferred provider organizations.
•Analyze the implications of adverse selection in insurance markets that contain information asymmetry and community ratings. Justify your response.
•Analyze the primary ways in which analysts may use a model of the labor market to explain wage and employment figures for healthcare workers. Propose the main ways in which health status affects workers’ compensation overall. Provide at least one (1) example the model in use to support your response.