The following are three statements about an individual firm in a perfectly competitive market. For each statement, indicate whether it is True or False and explain why.

(a) The firm's output level is very small relative to market output; therefore the firm cannot influence the price, but rather takes market price as given.

(b) The firm faces a downward sloping marginal revenue curve.

(c) The firm will maximize profit in the short run by setting quantity such that the difference between MR and MC is maximized.