True or False:
1. Because the short run is too brief for new firms to enter the market, the market supply curve is the vertical summation of the supply curves of existing firms.
2. As new firms enter an industry where sellers are earning economic profits, the result will include a reduction in the equilibrium price.
3. In long-run equilibrium, perfectly competitive firms make zero economic profits, earning a normal return on the use of their capital.
4. For a perfectly competitive firm, the long-run equilibrium will be the point at which price equals marginal cost as well as short-run average total cost and long-run average cost.
5. In a constant-cost industry, the industry does not use inputs in sufficient quantities to affect input prices.
6. In a constant-cost competitive industry, industry expansion does not alter a firm’s cost curves, and the industry long-run supply curve is upward sloping.
7. In a constant-cost competitive industry, the only long-run effect of an increase in demand is an increase in industry output.
8. When an industry utilizes a large portion of an input, input prices will rise when the industry uses more of that input as it expands output.