Which of the Following Statements Is (Are) TRUE

Multiple Choice

Which of the following statements is (are) TRUE?
I. Free entry to a perfectly competitive industry results in the industry's firms earning zero economic profit in the long run, except for the most efficient producers, who may earn economic rent.
II. In a perfectly competitive market, long-run equilibrium is characterized by LMC < P < LATC.
III. If a competitive industry is in long-run equilibrium, a decrease in demand causes firms to earn negative profit because the market price will fall below average total cost.

A) I, II, and III
B) II and III
C) I and III
D) I