Question

Springfield Dental Care is the only dental care provider in the town of Springfield with about 5,000 residents. What are some of the reasons why this practice enjoys monopoly power in Springfield? If it is the only dental care provider in town, can it charge any price it wants for its services? Explain why or why not? (Use microeconomic terminology)

Answer 1

After the post world war - II, The American country faced the critical challenging situation for many problems of dental solutions. The Dental health care crisis was sharply evidenced in this time. The research study reveals the fact that the 5,493 areas lacks the dental service providers. It is acceptable fact that dental practitioners are working as nurses in some selected areas. But aslike nurses cannot able to provide constructive and reliable services as original dental practitioners. In such situation, Springfeld Dental Care provides dental services to the people in the town of springfield.

Springfield Dental Care enjoys its wide monopoly power due to following reasons. 1) Advent of migration from traditional practice to the practice of special therapy services, students graduating in the dental colleges were declined. The proportion of doctors with the propotion of dental care clinics were also declined. Many areas are not having sufficient dental treatment source. 2) Almost only 5726 dental doctors are serving the people across all the areas in US. For every 5000 people the need for dental doctor is essential. But it made highly impossible to search doctors to treat every set of 5000 people. 3) Due to scarcity of dental care clinics, the Medical Treatment cost was also fixed at reasonable and affordable cost. Due to less volume of patients getting treatment in the dental clinic the cost of setting up the dental clinic rose up to the very extent level. 4) Many Dental Doctors changes their field of practice to other fields like Oral surgery, Orthodentics, etc. So the shortage of dental clinics occurs. 5) US encourages dental graduates to do service in the rural areas. But due to the poor income earning strategy, Dental graduates stops practicing dental service. They choose other alternarive medical services. The above factors influenced the strong condition of Spring Dental Care to enjoy its monopolistic condition to treat the dental patients.

Springfield Dental Care is the only provider in the springfield fields of US. Due to its many technological backed treatment, people are sourced there to get treatment without any alternative way. The price of the medical treatment is the quite high in some special treatments. But otherwise the price are little affordable to pay for the normal services in the Springfield Dental Care. Springfield Dental care provides nearly 600 procedure oriented treatment to all types of people in the springfield region of US. The Springfield Dental Care may also have the chance of fixing the price automonously with the increasing demand for the searching for the dental solution need. The demand for the dental solutions for the particular period and also the scarcity of the needs with affordable price will be the main reason for the fixing the price for the dental treatment. In order to provide the flawless dental care solution, Springfield Dental Care fixes the high price for the patients. It is clearly explained by the above stated points.