All else constant, a cartel agreement will become more difficult to enforce as the number of firms competing the market increases and the members of the cartel produce a differentiated product

"Demand" refers to the relationship between the price of a good and the quantity consumers are willing and able to buy at each price

Indicate whether the statement is true or false

When a perfectly competitive industry is in long-run equilibrium, firms maximize profits, and entry forces the price down

a. until all loss making firms leave the industry. b. until each firm can earn acceptable level of economic profit. c. until price becomes tangent to the long run average cost curve. d. until the long average cost curve rises above the demand curve.