Your pharmacy provides services to Medicare and PPO patients. You estimate a price elasticity of…


Your pharmacy provides services to Medicare and PPO patients. You think a charge elasticity of require of −2.2 for Medicare patients and −5.3 for PPO patients. Your marginal and average cost for dispensing a usage is $2. What is the profit-maximizing dispensing fee for Medicare and PPO patients? Why authority the charge elasticities of require dissent?