Economics: Principles, Problems, and Policies, 19th Edition

by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.

Published by McGraw-Hill Education

ISBN 10: 0073511447

ISBN 13: 978-0-07351-144-3

Chapter 21 - Health Care - Problems - Page 453: 2d

Answer

See explanation

Work Step by Step

Vanessa: Would prefer HeadBook to buy the insurance — she gets $\$5,000$ coverage instead of $\$4,000$. HeadBook: Indifferent from a corporate tax perspective (tax savings are the same either way). So, no profit motive to deny her preference.

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