Part 1: True or False- Assume that you and your cousin, Tommy, inherit your uncle's brake pad business. Below are a list of statements made by Tommy. Identify which statements are false and write a sentence that corrects his misunderstanding. Assume that your brake pads are sold in a perfectly competitive market. 1. "The additional cost of brake pads will initially decrease then increase as more are produced." 2. "We should produce brake pads as long as our average total cost (ATC) is falling." 3. "If we increase the price of our brake pads we will make more profit." 4. "In the long-run, the average total cost of each brake pad will equal the price of each brake pad." 5. "We should shut down if we make a loss in the short run."