Q1. Assume that with 400 patients per year, the SAFC (short-run average fixed costs), SATC (short-run total costs) and SMC(short-run marginal costs) of operating a physician clinic are $10, $35, and $30 per patient, respectively. Furthermore, Assume the physician decides to increase the annual patient load by one more patient. Using short-run cost theory, elucidate the impact of this additional patient on the SAVC and SATC. Do they increase or decrease? Why?
Q2. Explain how do acts of intellectual piracy hurt American companies?