It is common for many fertility physicians to run their own individual offices where they see patients. It is also common for many of the same fertility physicians not to set up their own surgical and lab facilities, necessary for performing in-vitro fertilization (IVF) , and other infertility treatments and procedures. Rather, many of them choose to share one well equipped facility. Which of the following must be true about the business organization in this particular sector?
A) Substantial economies of scale are realized by each fertility physician who runs his/her own individual office to see the patients.
B) Substantial economies of scale are realized by each fertility physician who runs his/her own IVF lab / surgical facility.
C) Substantial economies of scale are realized by those fertility physicians who collectively share one IVF lab / surgical facility.
D) Each fertility physician who runs his/her own individual office to see the patients can significantly increase their revenue if opting instead to have one large group practice with other fertility physicians.
E) Each fertility physician who collectively shares one IVF lab / surgical facility with other fertility physicians can significantly increase their revenue if opting instead to set up such facility of their own.
Correct Answer:
Verified
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