1,Statement 1: One can increase the short run profit of a firm by increasing quality in such a way that the increase in the customer's willingness to pay for the product rises by less than the increase in the cost of producing a unit of the product.

Statement 2: Another way to increase the short run profit of a firm is to raise the price of a substitute product.

Both statements are true

Statement 1 is true, but 2 is false

Both statements are false.

Statement 2 is true, and 1 is false

2, Statement 1: A firm that has a superior factor of production will always find that it earns unusually high accounting profit.

Statement 2: Network effects occur only when a company connects its business to the internet.

Both statements are true

Both statements are false.

Statement 1 is true, but 2 is false

Statement 2 is true, and 1 is false