Problem 1: Explain how learning by doing improves patient welfare.
Problem 2: If learning by doing is a prominent, then will increased competition increase welfare? Explain why or why not.
Hint: assume a fixed finite number of patients.
Problem 3: For medically insured individuals with a 99% copayment rate, will increased competition improve their welfare? (Assuming there is no arms race or adverse effects of competition on learning by doing)? Explain why or why not. 0 Hint: think about price and quantity in oligopoly market vs. a perfectly competitive market.