Question: Are the following statements true or false? In each case provide a concise explanation for your answers.

a. Consider a Cournot duopoly market structure where the market demand is linear and each firm has constant marginal costs of production. If one firm has lower costs than the other, that firm will produce more and make more profits in equilibrium.

b. Monopolistic competition and perfect competition are market structures in which firms earn zero (economic) profits in long run equilibrium. Therefore, these market structures have an equal degree of economic efficiency from society's perspective.

c. The production function \(Q=10{{K}^{\alpha }}{{L}^{\beta }}\) will result in an output expansion

path along the ray: \(K=\frac{w\alpha }{r\beta }L\) [where w = the price per unit of labour; r = price per unit of capital; K = units of capital , L = units of labour and Q = output].