Question

a health - care firm is looking to expand to international markets in an effort to increase profits. one potential location has only a few competing health - care providers, each holding a significant percentage of market share. licensing requirements are high, but what benefit might the firm consider in establishing a presence there? (1 point)

the high prices that arise from perfect competition
the high prices that arise from monopolistic competition
the downward - sloping demand curves
the horizontal demand curves

Explanation:

In a market with few competing health - care providers each holding significant market share, it is a monopolistic competition or oligopoly - like situation. In monopolistic competition, firms can charge higher prices due to product differentiation. High licensing requirements act as a barrier to entry, which can help the firm maintain some market power and potentially charge higher prices. In perfect competition, prices are set by the market and are not high. Downward - sloping demand curves are a characteristic but not a unique benefit here. Horizontal demand curves are in perfect competition.

Answer:

the high prices that arise from monopolistic competition