Consider the behavior of firms and consumers under perfect competition. Answer True, False or Uncertain. Explain your answer. Each correct choice gives you 2 points and each correct explanation gives 3 points. Each question has a total of 5 points. 1. In the long run, profits are equal to zero. 2. Consumers can influence the price of goods by reducing their consumption. 3. Firms will always make positive profits if their production function exhibits diminishing returns to scale. 4. In the long run, all investment options yield the same rate of return. 5. All consumers are better off with a maximum price regulation (price ceiling) on essential goods. 6. If the government imposes a minimum price on milk, all milk producers will earn higher profits compared to free market scenario. 7. Firms do not have the freedom to set wages for their workers. 8. A firm can increase its profits by reducing its production level