Using the business idea you choose to develop, answer the questions below. TIP: Refer to the Section 8, Lesson 2 Choosing a Business Structure page to consider the pros and cons of each consideration.

a. How many business owners will there be?

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.