ECON 303 Bentley University Article Responses & Questions

Description

Read the article, “CVS Plays Hardball with Rival Drug Chains” by Ed Silverman and Paul Ziobro, The Wall Street Journal, October 20, 2014. Assignment: 1 page******* plus field knowledge(below instructions) Is it fair for CVS to charge more for co-pays on health insurance for pharmacies that sell tobacco products? Are there any social benefits to CVS’s brand to capitalize on the fact that it does not sell tobacco and charges higher co-pays for those who buy drugs from pharmacies that sell tobacco? Is it possible that pharmacies that sell tobacco products will be damaged by CVS’s plan to charge more for prescription drug co-pays? Make sure that your analysis is clear and understandable. Any graphs should be completely labeled. In the essay, make sure that your explain/support/defend your position. Your essay should be based on your economic analysis. Use economic concepts and terminology that we have covered in this course. The assignment is worth 100 CD$. The assignment is due by Sunday, November 7 14, 2021, 11:55pm (ET). For assessment purposes in the School of Management, the following components will be evaluated in the essay: Identify and describe key principles and values of the relevant ethical frameworks. Identify the relevant stakeholders of a situation. Identify potential ramifications of decision FIELD KNOWLEDGERead
the article, “CVS Plays Hardball with Rival Drug Chains” by Ed Silverman and
Paul Ziobro, The Wall Street Journal,
October 20, 2014. Based on this article, consider the market for prescriptions
drugs and answer the following questions, using
the attached graph(graph is in dowloads).
Suppose
health insurance policies did not cover prescription drugs in their plans.

What would be
the price of a prescription? Why?

How many
prescriptions would be bought? Why?

How many
prescriptions would be sold? Why?

Now
suppose prescription drugs are covered in health plans offered by health
insurance companies such as CVS Health Corp.

What would be an
appropriate price to choose as the initial copayment? Why?

How many
prescriptions would consumers want to buy at that price? Why?

How many
prescriptions would the drugstore want to sell at that price? Why?

How many
prescriptions would be sold? Why?

How much would
the consumer pay? How much would the drugstore receive? Why?

What would be
the per-unit-cost of the prescription drug to the health insurance
company?

Now
suppose CVS Health Corp. charges a higher copayment for those consumers that
purchase prescription drugs from a drugstore store that sells tobacco products.

What would be an
appropriate price to choose as the new copayment? Why?

How many
prescriptions would consumers want to buy at that price? Why?

How many
prescriptions would the drugstore want to sell at that price? Why?

How many
prescriptions would be sold? Why?

How much would
the consumer pay? How much would the drugstore receive? Why?

What would be
the per-unit-cost of the prescription drug to the health insurance
company?

16.
What is the definition of “consumer surplus”?
17.
What is the definition of “producer surplus”?
18.
What is the definition of “total surplus”?
For
drugstores that do not sell tobacco products:

What areas
comprise the consumer surplus?

What areas
comprise the producer surplus?

What areas
comprise the total surplus?

Under
CVS Health Corp.’s new policy, for drugstores that do sell tobacco products:

What areas
comprise the consumer surplus?

What areas
comprise the producer surplus?

What areas
comprise the total surplus?

2 attachmentsSlide 1 of 2attachment_1attachment_1attachment_2attachment_2.slider-slide > img { width: 100%; display: block; }
.slider-slide > img:focus { margin: auto; }

Unformatted Attachment Preview

ECON303 (Intermediate Microeconomics)
Assignment for Ethics Assessment
Instructor: Dr. Della L. Sue
Date: Fall 2021
In cooperation with the School of Management, the Economics Department has been asked to
assess our students in various areas in several courses. Ethics will be assessed in ECON303. Therefore,
the following task is now a course requirement:
•
Read the article, “CVS Plays Hardball with Rival Drug Chains” by Ed Silverman and Paul Ziobro,
The Wall Street Journal, October 20, 2014.
•
Assignment:
o Field Knowledge Component: Analyze the market for prescriptions drugs with the plan
offered by CVS Health Corp. and without the plan. The analysis will involve a comparison
between drugstore chains that do not sell tobacco products and those that sell tobacco
products by answering the questions on the form.
o
Based on your economic analysis (Field Knowledge Component), write an essay (1-2 pages,
typed, single space) addressing the following questions:
? Is it fair for CVS to charge more for co-pays on health insurance for pharmacies
that sell tobacco products?
? Are there any social benefits to CVS’s brand to capitalize on the fact that it does
not sell tobacco and charges higher co-pays for those who buy drugs from
pharmacies that sell tobacco?
? Is it possible that pharmacies that sell tobacco products will be damaged by
CVS’s plan to charge more for prescription drug co-pays?
o
Make sure that your analysis is clear and understandable. Any graphs should be
completely labeled. In the essay, make sure that your explain/support/defend your
position. Your essay should be based on your economic analysis. Use economic concepts
and terminology that we have covered in this course.
•
The assignment is worth 100 CD$. The assignment is due by Sunday, November 7 14, 2021,
11:55pm (ET).
o Your field knowledge component needs to be handed in by uploading it into your Drop
Box in our iLearn Course site; 25 CD$ (late penalty: 10 CD$).
o Your essay needs to be submitted as a Word-document in the Assignments area in the
iLearn course site; TurnItIn.com will be activated; 75 CD$ (late penalty: 30 CD$).
•
For assessment purposes in the School of Management, the following components will be
evaluated in the essay:
o Identify and describe key principles and values of the relevant ethical frameworks.
o Identify the relevant stakeholders of a situation.
o Identify potential ramifications of decision(s).
o Articulate and defend your decision(s) or course of action within an ethical framework.

Purchase answer to see full
attachment

Explanation & Answer:
1 Page

25 Questions

Tags:
producer surplus

tobacco products

Drugstore

User generated content is uploaded by users for the purposes of learning and should be used following FENTYESSAYS.COM ESSAY’s honor code & terms of service.