Asked by
Richard Ballesteros
on Nov 27, 2024
Verified
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 profits will discourage new firms from entering.
B) Balin's will increase its market price over the coming months.
C) Balin's is operating in the short run, but not the long run.
D) Balin's is operating in the long run.
Economic Profits
The disparity between a company's overall income and its comprehensive economic expenses, accounting for both direct (explicit) and indirect (implicit) costs.
Purely Competitive
A market structure characterized by many sellers offering identical products, leading to no single seller influencing the market price.
Market Price
The present cost at which a service or asset is available for purchase or sale in a specific market.
- Assess the expenses organization and financial success (economic benefits, financial losses, and typical profits) for entities operating in markets of perfect competition.
Verified Answer
MR
Learning Objectives
- Assess the expenses organization and financial success (economic benefits, financial losses, and typical profits) for entities operating in markets of perfect competition.