If a Local Community Has Only One Doctor, the Monopoly

question 180

Multiple Choice

If a local community has only one doctor, the monopoly power of the physician will

• A) be small if entry barriers into the local market are high.
• B) depend on how many other physicians there are in the national market.
• C) be total since there are not any other providers of the same service in the local market.
• D) be minimal if the entry barriers restricting competition from other physicians are low.

---

Definitions:

Maximum Loan

The highest amount of money that a lender agrees to lend to a borrower under specific terms.

Annual Premiums

Regular payments made yearly to an insurance company for coverage.

Endowment Policy

A life insurance contract designed to pay a lump sum after a specific term (on its 'maturity') or on death.

Premiums

Regular payments made to keep an insurance policy active and maintain coverage against risks.