For each of the following questions, first state if the statement is True or False. Then, give a brief explanation.

1 Producers in a competitive market have to derive positive producer surplus in the short- run to remain operational

2 Consumer surplus is higher in the long-run than in the short-run of a competitive market.

3 A competitive firm making negative profits should shut down in the short-run.

4 In competitive markets, per unit taxes levied on producers reduce producer surplus in the long-run.