Part I: Short Questions Question 1 [20 points] Evaluate the validity of each of the following statements if a statement is not valid, provide counter examples and explain how to improve its validity. If a statement is valid, prove the validity either analytically or with graphical/written argument. Be sure to clearly accompany your explanation using graphs and equations where appropriate. Points are awarded for the quality I completeness of your explanation: a) To maximize prot, the only condition is that marginal revenue equals marginal cost b) In the long-run exit decision-making, rms consider the minimum average variable cost. c) The rm's supply curve is identical to the marginal cost curve. d) Applying price ceiling to control price will already increase the consumer surplus as the rent is more affordable with the price ceiling