If firms are protected by substantial barriers to entry, short-run profits can turn into long-run profits

Which of the following individuals is not hurt by inflation?

A. Akshay, who borrowed $1,000 from a friend and agreed to pay the same amount one year later, but during the year, prices increased by 10 percent. B. Vjiay, who lent his friend $1,000 and agreed to accept repayment of the same amount one year later, but during the year, prices increased by 10 percent. C. Randall, who lives on a fixed income of $800 per month. D. Asuza, who keeps her savings in the form of cash in a safe at home.

Suppose that beef producers create a negative externality. What is the relationship between the equilibrium quantity of beef and the socially optimal quantity of beef?

a. They are equal. b. The equilibrium quantity is greater than the socially optimal quantity. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.