Decide whether each of the following statements is true or false for each of three different types of markets: perfect competition, monopoly, and monopolistic competition.
a. Firms equate price and marginal cost.
b. Firms equate marginal revenue and marginal cost.
c. Firms earn economic profits in the long run.
d. Firms produce the quantity that minimizes long run average cost.
e. New firms are free to enter this industry.