Imagine that your community has only two hospital systems that compete on
everything except price. You consider this situation to be an oligopoly. How would
you describe the delivery of health care in your community?
a. The two hospital groups compete on service to the betterment of the patients.
b. The absence of effective price competition is likely to lead to cost
inefficiencies.
c. The two hospital groups compete on quality of care to the betterment of the
community.
d. The delivery of health care in this community depends on the commitment to
quality care that each health care professional makes as part of his/her
training.
Answer: b
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