In 1989 the Chrysler Corporation released figures showing that its employee health care costs were $5,970 per employee and $700 per vehicle produced. According to the report, its foreign competitors fared much better. Health care costs for automobile companies averaged $375 in France, $337 in Germany, and $246 in Japan, placing Chrysler at a competitive disadvantage. Is there anything wrong with this conclusion? What are the microeconomic arguments and the macroeconomic arguments as they relate to this issue?
In 1989 the Chrysler Corporation released figures showing that its employee health care costs were $5,970 per employee and $700 per vehicle produced. According to the report, its foreign competitors fared much better. Health care costs for automobile companies averaged $375 in France, $337 in Germany, and $246 in Japan, placing Chrysler at a competitive disadvantage. Is there anything wrong with this conclusion? What are the microeconomic arguments and the macroeconomic arguments as they relate to this issue?
Chapter14: Medical Care Systems Worldwide
Section: Chapter Questions
Problem 7QAP
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In 1989 the Chrysler Corporation released figures showing that its employee health care costs were $5,970 per employee and $700 per vehicle produced. According to the report, its foreign competitors fared much better. Health care costs for automobile companies averaged $375 in France, $337 in Germany, and $246 in Japan, placing Chrysler at a competitive disadvantage. Is there anything wrong with this conclusion? What are the
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