A new loan results in an increase in the customer's checking account and the bank's demand deposits

If a perfectly competitive firm finds that the price exceeds its ATC, then the firm

A) will raise its price to increase its economic profit. B) will lower its price to increase its economic profit. C) is making an economic profit. D) is incurring an economic loss. E) is making zero economic profit.

For baseball card collectors, Babe Ruth baseball cards from 1927 would most likely have a perfectly

A) inelastic demand. B) inelastic supply. C) elastic demand. D) elastic supply.