Economies of scale means that a group physician practice is likely to return more income to physicians than would an individual practice. True or false?
True. Economies of scale generally refer to the cost advantages that arise when the scale of production or operation increases. In the case of a group physician practice, having multiple physicians working together allows them to share resources, such as equipment and administrative staff, which can lead to lower costs per physician compared to an individual practice. This means that the group practice is more likely to generate higher income for the physicians involved.
