Doctors and plumbers. Consider the structure of geographically isolated mar- kets in the US (small towns) in the following businesses: doctors, dentists, plumbers. It can be shown that the minimum town size that justifies the entry of a second doctor is approximately 3.96 times the required size for the first doctor to enter. For plumbers, the number is 2.12. How can these numbers be interpreted?

Doctors and plumbers. Consider the structure of geographically isolated mar- kets in the US (small towns) in the following businesses: doctors, dentists, plumbers. It can be shown that the minimum town size that justifies the entry of a second doctor is approximately 3.96 times the required size for the first doctor to enter. For plumbers, the number is 2.12. How can these numbers be interpreted?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter9: The Physicians’ Services Market

Section: Chapter Questions

Problem 6QAP

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