According to the monopoly rents hypothesis of licensure,
A) physicians will seek to limit the use of foreign trained physicians.
B) only physicians should dispense flu shots.
C) allergists should welcome the new supply of herbalists in the field of allergy treatment.
D) nurse practitioners should be welcome substitutes for physicians for performing annual gynecological exams.
E) insurance has little role in insuring current profit levels are protected.

Question

Quizplus · Accepted Answer

The monopoly rents hypothesis of licensure suggests that professionals, such as physicians, will seek to limit competition to maintain higher income levels. Thus, they would likely seek to limit the use of foreign trained physicians to reduce competition.

According to the Monopoly Rents Hypothesis of Licensure