Ping-Aye Tropical Fruits Company must choose between two transportation options: a contractual arrangement with a local carrier that costs $4,500 upfront plus $250 for each shipment, or leasing its own refrigerated trucks which will cost $20,000 plus $45 for each shipment. What is the indifference point?
a. $973,250
b. $910,750
c. $194,375
d. $183,125

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.