Graphic Differentiation Clarifies Helath Care Pricing (UMAP)

This module uses graphic differentiation to clarify health care pricing. It explains the notion of derivative graphically, and shows how economists use it as a language.

Table of Contents:

INTRODUCTION
Professionals Argue about the Cost of Health Care

MATHEMATICS
Tangent Lines Stay Close to Curves
The Slope of a Curve is the Slope of Its Tangent Line
The Derivative Records Slopes
Sketches of Derivatives often Suffice

APPLICATION
The Marginal Cost Measures the Rate of Change of the Total Cost
At Its Minimum the Average Cost Equals the Marginal Cost
At the Highest Profit the Marginal Cost Equals the Marginal Revenue
Does Cost Mean Average Cost of Marginal Cost?

SYNOPSIS

MODEL EXAMINATION

ANSWERS
Answers to All the Exercises
Answer to the Model Examination

REFERENCES