Question

Suppose that a group of physicians establishes a joint practice in a remote area. This group provides the only health care available to people in the local community, and its objective is to maximize total economic profits for the group's members. Explain how the price and quantity of health care will be determined in this community. (Hint: How does a single producer of any service determine its output and price?)

Short answer

The economic profits increased for the group's members.

Step-by-step solution

Given Information

A gathering of physicians lays out joint practice in the distant region. As this is the main gathering, this whole gathering will function as syndication.

Explanation

Restraining infrastructure is a market structure where there is a solitary maker or dealer that has control of the whole market. They are managing such assistance that has no nearby substitutes, however, has an immediate interest, supply, and costs of their administration.

They will decide the cost and how much assistance (amount of result) in a similar way as a monopolist

Monopolist expands the benefit where Marginal income is equivalent to peripheral expense.