1.State the following statement true or false. Justify the false statement.

a.In the short run of perfect competition, the number of firms adjusts to drive the market back to the zero-profit equilibrium.

b.The larger the monopoly power, the larger the profit of monopoly.

c.Price paid by buyers in a given group is the same for all units purchased.But price may differ across buyer groups is called first degree price discrimination.

d.Profits will attract new firms to the industry as there is no barrier to entry in monopolistic competition.