7) a company that produces a single product had a net operating income of $65,000 using variable costing and a net operating income of $95,000 using absorption costing. total fixed manufacturing overhead was $60,000 and production was 10,000 units both this year and last year. last year was the first year of operations. between the beginning and the end of the year, the inventory level: a) decreased by 5,000 units b) increased by 5,000 units c) decreased by 30,000 units d) increased by 30,000 units

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.