25 Questions

1. Name four differences between the medical market and regular markets.
2. What is elasticity?
3. Name two products that are substitutes.
4. Name two products that are complements.
5. Is the demand for medical care price elastic or price inelastic?
6. What is the income elasticity for medical care?
7. If fixed costs are 500 and variable costs are 10 and the price is 20, at what quantity will you break even?
8. If fixed costs are 1000 and variable costs are 100 and the price is 150, what would be your profit or loss if you sold 75 units?
9. Should you maximize revenue or maximize profits?
10. Where do you maximize profits?
11. What is a sunk cost?
12. Can a company become too big? Why?
13. If you are experiencing diseconomies of scale, what should you do?
14. What is "Learning by Doing" suggest about average costs?
15. What is information asymmetry?
16. What are the four types of market structures?
17. What are four barrier to entry?
18. How long does a patent last?
19. What is the problem with patents and new drugs?
20. Can the drug approval process harm people?
21. What is an example of a network externality?
22. How do monopolists increase profits?
21. What happens to marginal revenue when a monopolist reduces price?
22. What are antitrust laws?
23. Do monopolies generally last very long without government protection?
24. What is a natural monopoly?
25. Does it always make sense to hire the lowest-wage employee?