Question

13. Consider the following three statements about perfect competition: In the long run, firms enter or exit a perfectly competitive industry in search of higher profits 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 long-run supply curve of the perfectly competitive industry, each firm is supplying more output to the market Which of the above statements are true about a perfectly competitive industry? (A) I only (B) II only (C) III only (D) I and II (E) I and III (F) II and III (G) I and II and III (H) none of the above