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These factors include the determinants of supply and demand and how they affect the hospital, the laws of diminishing marginal utility and diminishing returns and their consequences, and the economic forecasts. Appling these factors to their oligopoly market structure can maximize profits by predicting how the market may change in the future and making appropriate adjustments in the pricing of the product and costs associated with the running the hospital.
Product Pricing
Utility
According to McConnell and Brue (2005), utility is "the satisfaction or pleasure a consumer obtains from the consumption of a good or service (or from the consumption of a collection of goods and services" (p...
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