Question

35. Consider the following three statements about perfect competition. Which of these statements are true about a perfectly competitive industry? 1. In the long run, firms enter or exit a perfectly competitive industry in search of higher profits but all of them end up earning zero profit. II. Every firm in long run equilibrium will be exactly the right size to deliver the lowest possible average costs of production. III. As we move to the right along the short-run supply curve of the perfectly competitive industry, each firm is supplying more output to the market. (A) I only fB) II only (C) III only (D) I and II (E) I and III (F) II and 111/(G)) and II and III (H) none of the above