Balin’s Burger Barn Operates in a Perfectly Competitive Market

Multiple Choice

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.Learning Objective: 11-01 Explain how the long run differs from the short run in pure competition.