3. [Firms and Industries Changing Over Time—The Rise and Fall of Industries] For the following statements please answer

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3. [Firms and Industries Changing Over Time—The Rise and Fall of Industries] For the following statements please answer

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3. [Firms and Industries Changing Over Time—The Rise and Fall ofIndustries] For the following statements please answer TRUE orFALSE, and please give a brief explanation.
(b) Competitive firms always earn zero economic profit becausethey set the market price equal to their marginal cost.
(c) In the long run, competitive firms produce at the lowestpossible value of average total cost.
(d) Since there are zero economic profits in the long run, thereis no incentive for a firm to pursue cost-cutting measures.
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