Glaxosmithkline (gsk) maximizes profit by producing a quantity of 800 pills where marginal cost is $2 and average cost is $4. consumers are willing to pay as much as $10 per pill when the quantity supplied is 800 pills. what is the maximum amount of profit that gsk can earn under these conditions?

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.