The laws of a competitive marketplace do not apply well to medicine, because physicians define what patients need and provide their services at prices they, their employers, or the federal government set.

Question

Quizplus · Accepted Answer

The statement is true because unlike in a competitive marketplace where customers determine what they want and businesses compete to provide it at the lowest price possible, in medicine physicians have a greater role in determining what services are needed and at what prices they are provided to patients. Additionally, the healthcare industry is heavily regulated by government entities, further limiting the application of traditional market principles.

The Laws of a Competitive Marketplace Do Not Apply Well