1. What features distinguish the physician-firm from physicians themselves? (Phelps, problem 3, pg. 174).
- Nature of employment distinguishes the two. - The ultimate responsibility of the patient within the firm’s confinement also distinguishes the two..
2. “Physicians earn above-competitive wages, and the best evidence of this is the very high annual incomes that some doctors earn.” Comment. (Phelps, problem 4, pg. 174) This could be due to the fact that minor procedure (which can be done several in a day) presents the best return. They also get more than their earning power due to the fact ...
