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Marcos's brother, Luis provides orthodontics services in the rural area in which he and Marcos live. Professionally, Luis feels somewhat lonely. His closest colleague
Marcos's brother, Luis provides orthodontics services in the rural area in which he and Marcos live. Professionally, Luis feels somewhat lonely. His closest colleague is quite far away. He says orthod Marcos's brother, Luis provides orthodontics services in the rural area in which he and Marcos live. Professionally, Luis feels somewhat lonely. His closest colleague is quite far away. He says orthodontists in the city must be happier, able to meet up for lunch with colleagues to "talk shop," etc. a) Suppose Luis faces the following demand curve for his services: Q=40-1/2P, where Q is patients per day. Do Marcos and Luis differ in terms of market power? Where does Luis's market power originate? Why might Luis's demand curve slope downward? b) Luis's cost function is TC-60+30Q. What types of fixed costs does an orthodontist have?
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