Graduates veer away from pediatrics and family medicine. "Since 1997 the number of medical school graduates going into pediatrics or family medicine has dropped by 50%. New doctors are opting instead for specialties such as orthopediac surgery, which pays an average of $480,000 a year, instead of pediatrics which pays $171,000".

First, discuss the decision by doctors to enter seperate markets for various specialities rather than starting a family practice. Second, discuss the monoploy that the American Medical Association holds on the production of doctors in the US and its implications on market prices and efficiency.