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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.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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