Profit maximizing firm in a competitive

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1. Are the following statements true, false? Please give an explanation.

(a) Although a profit maximizing firm in a competitive industry may earn negative profits in the short run, producer surplus will always be non-negative.

(b) For a given technology and input prices, the long run average and marginal costs are always below the short run average and marginal costs (respectively) for any level of output.

(c) Long-run market supply curves are always flat at prices equal to minimum average cost.

(d) Consumers are always made worse off by government policies that generate dead weight losses.

Reference no: EM132548775

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