Answer the following 2 questions seperately Assignment

Answer the following 2 questions seperately - Assignment ExampleOn the another(prenominal) hand, public interest theory asserts the need to keep prices at reasonable rates so that more(prenominal) people can access health care services and that more readily and cheaply. As such, the government should throw in to ensure that the best interests of the society are served. In this thinly, there is the push to have the government pullulate and nurture competition, liberalize information, assuage externalities and to address market failures (Sirgy, Dong-Jin & Yu, 2011).Public interest theory is the most slick and tenable of the two, since healthcare market primarily discharges public or social goods. Healthcare is too unattackable to be given an economic laissez faire. Likewise, it is very inappropriate and unfortunate to create a situation in the healthcare system where the public bears the burden of operational inefficiencies as players in the business (pharmaceutical and insuranc e companies, and healthcare institutions) rake profits. If the system that is envisioned by the special interest theory must be take or tolerated, healthcare systems must be exempted from such contriving.Imperfect information refers to a situation where the node or the seller does not have partial or right information that may impact their decisions. For instance, in a perfectly competitive market, though healthcare services insurers are entitled to full information pertinent to clients health status so that they can subsequently exact premiums in light of the expected costs, some clients will reserve themselves from detailing all the crucial information. Again, these clients may deliberately or inadvertently give inaccurate details. Most of the time however, clients will knowingly withhold information or give incorrect details to escape higher insurance premiums. The import of this development is that it often paves way of life for market failure, since the giver of the inaccu rate or incomplete