For each of the following three questions, please indicate whether it is true, false, or uncertain, and explain why.If the statement has two parts, or if it is partly true and partly false, please explain both parts.The evaluation of your answer focuses on the quality of your explanation.

A.(13 points)Given the following information:A perfectly competitive market for a commodity product exists, and initially the market is in long-run equilibrium, with a price of $20 per unit.

In this market there is one profit-maximizing firm that has lower cost than other firms in the market.In the initial long-run equilibrium this unique firm earns total economic profit of $30 million on its sales revenue of $100 million.The graph below shows the unique firm's (short-run) average cost curve.

As the market moves into the next short-run time period, there is an unexpected increase in market demand, and the market adjusts to a new short-run equilibrium.

Statement to evaluate:Comparing the new equilibrium (with the unexpected increase in market demand) to the initial equilibrium: For this unique firm, the firm's average economic profit per unit changes by more than the firm's average revenue per unit changes.

[In your answer, use the graph (and/or draw and use one or more other graphs), adding any lines, curves, or labels that you need.]