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1. Draw the average fixed cost, average variable cost, average total cost, and marginal cost curve for a physician-firm. Explain for each curve (4 explanations) why it has the shape that it does.
2. Assume the physician-firm is operating in a perfectly competitive market. Discuss and show graphically the firm’s output and price in the long-run.
1. Draw the average fixed cost, average variable cost, average total cost, and marginal cost curve for a physician-firm. Explain for each curve (4 explanations) why it has the shape that it does. 2. Assume the physician-firm is operating in a perfectly competitive market. Discuss and show graphically the firm’s output and price in the long-run.
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