Lecture 8: public and nonprofit organisations

Question 1

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What are the two models of non-profit organisations?

Answer 1

1. model 1 - the objective is maximising a mixture of quantity and quality of output (e.g. hospital maximising treatments)
2. model 2 - maximising next incomes (doctors maximising income)

Question 2

Draw out the maximisation problem for model 1, maximising quality

Answer 2

Question 3

Draw out the maximisation problem for model 1, maximising quality

Answer 3

Question 4

What is the best model to describe non-profit behavious (eg hospitals)

Answer 4

Question 5

What is the ramsay problem and what is it’s solution?

Answer 5