If it is shown that a newly formed large hospital, which was formed by the merger of two competing hospitals, charges more to uninsured patients than do smaller hospitals in the same market, for providing the same services, the large hospital may have market power to do so. the two small hospitals must be taking advantage of the economies of scale. it is an example of price discrimination. consumers’ welfare would not be affected. the large hospital must be violating the antitrust laws.

If it is shown that a newly formed large hospital, which was formed by the merger of two competing hospitals, charges more to uninsured patients than do smaller hospitals in the same market, for providing the same services, the large hospital may have market power to do so. the two small hospitals must be taking advantage of the economies of scale. it is an example of price discrimination. consumers’ welfare would not be affected. the large hospital must be violating the antitrust laws.

		the large hospital may have market power to do so.
		the two small hospitals must be taking advantage of the economies of scale.
		it is an example of price discrimination.
		consumers’ welfare would not be affected.
		the large hospital must be violating the antitrust laws.