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Assume a market has four equally sized physician organizations, meaning they each provide about the same number of healthcare visits per month. The following figure
Assume a market has four equally sized physician organizations, meaning they each provide about the same number of healthcare visits per month. The following figure shows the market for healthcare visits for one physician organization that has some market power (downward sloping demand curve). If one of the three competitor firms in the market exits, then the demand for healthcare visits for the physician organization in the figure will increase , and its price elasticity of demand will become [less elastic or more elastic or stay the same]
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