Assume the partnership is formed and net cash flows are expected to grow at 10% each year. All else equal, what are the social welfare implications from the partnership, compared to the scenario of each doctor setting up their own lab?

a. Social welfare is improved due to economies of scale.

b. Social welfare declines due to diseconomies of scale.

c. Social welfare declines due to economies of scale.

d. There is no way to determine the impact on social welfare.

e. Social welfare is not affected.