A certain city has four hospitals, and there are no other hospitals within 200 miles. Two of the hospitals are more specialized than the other two because one has a large cardiac unit and the other has a specialized cancer-treatment center. The local market for hospital services is what type of market?
A)Monopoly
B)Oligopoly
C)Perfect competition
D)Monopolistic competition

Question

Quizplus · Accepted Answer

The fact that there are only four hospitals within a 200-mile radius and two of them are more specialized than the other two indicates that there are few competitors in the local market. This suggests an oligopoly market structure.

A Certain City Has Four Hospitals, and There Are No