1. What are the characteristics of a perfectly competitive market?
2. What is the difference between variable and fixed costs, how do they change in short-run vs. long-run? Provide an example in healthcare.
3. What does increasing returns mean in the short-run? Provide an example of increasing returns?
4. From an economic perspective, at what point does a firm decide to shut-down? Explain.
5. When a market is perfectly competitive what does this imply about the supply curve and the price charged for a particular good?
6. What is the level of profits in the long-run in a perfectly competitive market? Explain why.
7. What is the difference between an economic and accounting profit?
8. What is the principle of diminishing marginal return?