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What are the potential sources of efficiency gains

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Reference no: EM132840329

Suggest one of the example from below list to options from a to d.

  • Acquisition of MRI capabilities by non-radiologists
  • Evanston-Highland Park Hospital Merger
  • Advocate-NorthShore University Hospital proposed merger

a. Fill in the blank with one of these words: horizontal, non-horizontal, and explain your choice in few sentences: This transaction is an example of a _____________ combination.

b. What are the potential sources of adverse effects arising from the transaction in question? Focus not on what actually happened, but why it happened (or might happen). 

c. What are the potential sources of efficiency gains (e.g. reduced costs, improved quality) from this transaction?  

d. Suppose there are no adverse effects of the combination in question, and the efficiency gains you described actually materialize. What factors will determine whether these gains will be passed on to consumers? Given what you know about the relevantmarketplace, do you think pass through of gains to consumers is likely to be high or low, and why? 

Reference no: EM132840329

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