You own stock in a firm that has a pure discount loan due in six months. the loan has a face value of $50,000. the assets of the firm are currently worth $62,000. the stockholders in this firm basically own a option on the assets of the firm with a strike price of

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.