Which of the following functions does not require financial markets? a. Retention of cash by corporations
b. Provision of liquidity
c. Risk reduction by investment in diversified portfolios
d. Provision of pricing information

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.