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