Since 1987, hundreds of hospital mergers have taken place in the United States, and rarely has the U.S. Federal Trade Commission challenged a hospital merger.
What can you infer about the structure of the market in hospital services?
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Part 1
We can infer that the structure of the market in hospital services is such that _______.
A.
the HHI is greater than 2,500
B.
a merger will increase hospital costs
C.
a merger will not result in increased market power
D.
there is little competition but a merger will cut hospital costs