Balin's Burger Barn operates in a perfectly competitive market. Balin's is currently earning economic profits of $20,000 per year. Based on this information, we can conclude that
A) Balin's is operating in the short run, but not the long run.
B) Balin's is operating in the long run.
C) Balin's profits will discourage new firms from entering.
D) Balin's will increase its market price over the counting months.
Answer: A) Balin's is operating in the short run, but not the long run.
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Use the following figure to answer the question below.
Point A in the figure above is
A. not attainable. B. attainable and efficient. C. efficient. D. attainable but not efficient.
For a good whose production creates an external cost, the efficient quantity of output is
A) where the market demand curve and the market supply curve intersect. B) where the marginal social cost curve and marginal benefit curve intersect. C) as low as possible. D) zero. E) the amount of production so that the marginal social benefit exceeds the marginal social cost by as much as possible.
In the short run if TR < TC, a perfectly competitive firm will always shut down.
Answer the following statement true (T) or false (F)
Which statement is true?
A. President Eisenhower did not attempt to undo the legacies of the New Deal, such as Social Security and unemployment insurance. B. There was a major tax increase in 1964. C. A war in Vietnam and a "war on poverty" in the Johnson Administration helped to reduce the federal budget deficit. D. None of the choices are true.