Practice question
A hospital claims that every medical facility within two hundred kilometers belongs to the same market for an urgent specialized treatment. Nearby clinics cannot provide that treatment; distant hospitals can, but transfer delays and patient transport costs make switching impracticable for many patients. No further evidence supports the proposed boundary. What is the best conclusion?
- The claim is established because all facilities provide some health care
- The claim is established solely by drawing a distance circle
- All medical services always form one product market
- The relevant market must be limited to one hospital in every case
- The proposal requires evidence of service substitutability and feasible geographic switching; a common industry label and radius alone are insufficient
Legal references
- RA 10667, Philippine Competition Act, Sections 4, 14–15 and 24–27: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/63120
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