1. In terms of market structure, conduct, and/or performance, identify at least three differences one would expect to find between a hospital services market that is highly competitive (closer to perfect competition) versus a hospital services market that is highly concentrated (closer to oligopoly or monopoly).

2. Numerous empirical studies over the years have demonstrated that the physician services market retains significant characteristics of market power, especially in terms of long run profits and the presence of price discrimination among providers. These characteristics persist despite the fact that, structurally, the market appears to have also become more competitive due to a large increase in physician numbers along with the rapid proliferation of substitutes (e.g. PA's, NP's) for physician services. Identify a couple (2) of structural explanations that might help explain such results.