Which of the Following Statements Is (Are) TRUE

question 25

Multiple Choice

Which of the following statements is (are) TRUE?
I. Free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent.
II. In a perfectly competitive market, long-run equilibrium is characterized by LMC < P < LATC.
III. If a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.

• A) I, II, and III
• B) II and III
• C) I and III
• D) I

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Type A Blood

A blood group within the ABO system characterized by the presence of A antigens and anti-B antibodies in the plasma.

Antibodies

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A serious gum infection that damages the soft tissue and destroys the bone that supports teeth, possibly leading to tooth loss.

Atherosclerosis

Cardiovascular disorder in which lipid-rich plaques form on the interior walls of blood vessels and narrow the vessels.