Competitive Markets Concepts

Indicate whether each of the following statements is true or false, and explain why?

A. In long-run equilibrium every firm is a perfectly competitive industry earns zero profit.
B. Perfect competition exists in a market when all firms are price takers as opposed to price makers.
C. In competitive markets, P > MC at  the profit-maximizing output level.
D. Downward-sloping industry demand curves characterized perfectly competitive markets
E. A firm might show accounting profits in a competitive market but be suffering economic looses.