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Suppose that a group of physicians establishes a joint practice in a remote area. This group provides the only health care available to people in the local community, and its objective is to maximize total economic profits for the group's members. A government agency notifies the physicians' group that to continue providing services in the community, the group must document its activities. The resulting paperwork expenses raise the cost of each unit of health care services that the group provides. This will lead to

A. a decrease in health care costs.

B. a decrease in demand for health care services.

C. an increase in the group's health care cost and an increase in health care services provided.

D. an increase in the group's health care cost and a reduction in health care services provided.

Macroeconomics, Economics

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