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?
Chapter9: The Physicians’ Services Market
Section: Chapter Questions
Problem 6QAP
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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?
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