5. Suppose Ontarios healthcare system is subject to a physician cooperative (i.e., cartel) whose objective is to maximize physician salary by limiting physician supply. Letting denote the number of physicians employed by the healthcare system, the physician salary curve is () = 200,000 + 20 0.001 2 while the competitive physician inverse supply curve is () = 200,000 + 5. The first function represents the salary arising for a given level of employment while the latter represents the minimum salary required to induce a given level of employment to be supplied.

(a) Identify two distinct mechanisms by which the cooperative can control physician supply.