Introduction
In a perfectly competitive market, there are many sellers in the market selling differentiated goods. The consumer has the power to choose from which supplier he will buy the good from. There is also perfect knowledge in the market structure as the consumers have access on information such as the quality of products of each supplier. In the health markets however, there is imperfect competition which can be created by barriers to entry, economies of scale, collusion among sellers and advertising restrictions.
Economies of Scale in The Health Industry.
There are two major health providers in the whole country providing health care in Kidney dialysis. Imperfect competition ...
