A nurse midwife has moved into town and wishes to establish a practice. Economically speaking, what ...

C
Having costs that are lower than the competition will help bring in business according to the economic concept of substitutes. When two items or services are relatively equal in substance, an increase in the cost of one will drive up the demand for the other, which people will use as a substitute for the first item. By understanding the cost of physician care, this nurse can keep her prices low as the physicians raise theirs, leading patients to choose the midwife.
Becoming affiliated with the busiest maternity group would not be the best choice; in a large group, the midwife might not have any control of overhead costs or decisions about how the practice is run or what to charge patients.
Having low-interest loans will help the bottom line, but it would be more important to begin bringing in income.
Locating offices near a hospital that has a lot of births may not be possible, and it may not lead to a successful business anyway.