Questions: 1. Describe market failures and government failures. Explain how the government can be used to solve market failures,
2. Explain elasticity as it relates to consumer behavior. How does utility maximization work and explain how it affects consumer behavior.
3. Explain explicit and implicit costs and why both are important when making business decisions. What is accounting profit, and what is normal profit? What is the difference between fixed and variable costs?
4. Describe the characteristics of the pure completion market structure. Why is the consideration of pure completion different in the short run than it is in the long run?