If perfectly competitive firms are making an economic profit, then
A) the market is in its long-run equilibrium.
B) new firms enter the market and the equilibrium profit of the firms already in the market decreases.
C) new firms enter the market and the equilibrium profit of the firms already in the market increases.
D) firms exit the market and the economic profit of the surviving firms in the market decreases.
E) firms exit the market and the economic profit of the surviving firms in the market increases.
B
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Which of the following is not part of the "taxes" provision of the Patient Protection and Affordable Care Act (ACA)?
A) Workers earning more than $200,000 pay higher Medicare payroll taxes. B) Investors earning more than $200,000 pay a new tax on their investment income. C) Pharmaceutical firms and health insurance firms pay new taxes. D) Beginning in 2018, all taxes on employer-provided health insurance plans will be reduced or eliminated.
Using the above figure. A rightward shift of the supply curve, ceteris paribus, would result in
A) dollar appreciation. B) euro appreciation. C) dollar depreciation. D) decreasing the equilibrium quantity of euros.