Indicate whether each of the following statements is true or false, and explain why.
a. A competitive firm that is incurring a loss should immediately cease operations.
b. A pure monopoly does not have to worry about suffering losses because it has the power to set its prices at any level it desires.
c. In the long run, firms operating in perfect competition and monopolistic competition will tend to earn normal profits.
d. Assuming a linear demand curve, a firm that wants to maximize its revenue will charge a lower price than a firm that wants to maximize its profits.
e. In an oligopoly, the firm that has the largest market share will also be the price leader.
f. The demand curve facing a firm in a monopolistically competitive market is more elastic than one facing a pure monopoly.