Solved

If It Is Shown That a Newly Formed Large Hospital

Question 23

Multiple Choice

If it is shown that a newly formed large hospital, which was formed by the merger of two competing hospitals, charges more to uninsured patients than do smaller hospitals in the same market, for providing the same services,


A) the large hospital may have market power to do so.
B) the two small hospitals must be taking advantage of the economies of scale.
C) it is an example of price discrimination.
D) consumers' welfare would not be affected.
E) the large hospital must be violating the antitrust laws.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents