Question

A government agency determines that the entire community discussed in Problem 30-10 qualifies for a special program in which the government will pay for a number of health care services that most residents previously had not consumed. Many residents immediately make appointments with the community physicians' group. Given the information in Problem 30-10, what is the likely effect on the profit-maximizing price and the equilibrium quantity of health care services provided by the physicians' group in this community?

Short answer

profit-maximizing price and the equilibrium quantity of health care services provided by the physicians' group in this community will increase

Step-by-step solution

Given Information

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

Explanation

The imposing business model is a market structure where there is a solitary maker or merchant that has control over the whole market. They are managing such assistance that has no nearby substitutes, yet has an immediate interest, supply, and costs of their administration.

They will decide the cost and how much help (amount of result) in a similar way as a monopolist Negligible expense marginal cost bend would continue as before, the harmony guide shifts toward the right. Subsequently, Profit augmenting cost and amount will increment.