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Niceville, Ohio, Only Has Two Dentists, While the Surrounding Communities

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Essay

Niceville, Ohio, only has two dentists, while the surrounding communities have many more on a per capita basis. The demand for dental services is such that these two dentists could agree to raise their prices (they play golf together every Saturday) and earn economic profit. Instead, they choose to price competitively and earn what other dentists earn. What might explain this?


Definitions:

Basal Metabolic Rate

The speed at which the body consumes energy to support crucial life processes like breathing and staying warm when in a state of rest.

Diabetes Mellitus

A metabolic disease characterized by high blood sugar levels over a prolonged period, due to insulin production or response issues.

Adenohypophysis

The anterior lobe of the pituitary gland, responsible for secreting several key hormones that regulate growth, reproduction, and metabolism.

Anterior Lobe

The front part of an organ or gland, such as the anterior lobe of the pituitary gland, involved in hormone secretion.

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