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.

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.

Explanation:

A perfect competition is characterised by many buyers who sell homogenous products.

All firms in a perfect competition earn zero economic profit in the long run because there are no barriers to entry or exit.

In the long run, equilibrium occurs at: P = LMC = LATC

If demand falls, prices would fall below average total cost and the firm would earn negative profit .

answer: qué lástima, pero no podré ir.

explanation: the expression "qué lástima" means "what a pity" and indicates disgust, because she would like to go but she can't go.

​

d. the economy will face inflation.