There are generally, in most areas, a large number of qualified physicians whose services are highly personalized.In addition to price, factors such as age, sex, location, and personality influence the choice of physician.Thus, the market is best described as
A)perfectly competitive.
B)a differentiated oligopoly.
C)a monopoly.
D)monopolistically competitive.

Question

Quizplus · Accepted Answer

The fact that there are a large number of qualified physicians with highly personalized services indicates that they are offering differentiated products, which is a characteristic of monopolistic competition. The influence of factors such as age, sex, location, and personality on the choice of physician further supports this conclusion. While there may be some barriers to entry in terms of education and licensing requirements, there is not a significant barrier to entry into the market for physicians, and consumers have a variety of options to choose from. Therefore, the market is not a monopoly or oligopoly, and it is not perfectly competitive since there is product differentiation.

There Are Generally, in Most Areas, a Large Number of Qualified