Q2. Please give the full answers to all the questions from 3a to 3e, thank you!!

3c) In a perfectly competitive market, price must exceed marginal revenue at the profit-maximizing output level. -- -- - --- --- - --- -- -- B I U X2 X2 E E E ABC 123 D C evigilation.monash.eduEZE#F/280/W. OIndicate whether each of the following statement(s) is true or false and explain why. 3a) In short run, some firms in a perfectly competitive industry may earn positive economic profits. [Note: accounting profit and economic profit are different concepts.] A - BIU X 2 X2 ABC 123 G C Report qu evigilation.monash.edulEG#1089#6. 5578378cmid=93948page=4# O 8'C HHBA3d) The elasticity of demand in a perfectly competitive market, for the following demand function: Qd = 8 - P where Qd denotes quantity demanded and P indicates price, lies between zero and 1. A v BI U X2 X E E E ABC 123 O C evigilation.monash.eduETE#8 980##, OReport 3e) Because of drought like conditions in Australia, businesses have chosen to charge an extra 10 cents for 3-litre pack of milk, and they have labelled such containers as "drought relief milk". At the same time, the consumers have an option to buy the milk at the regular price. Are the two products "perfect substitutes"? A . BIU X2 > ABC 123 O C Report q evigilation.monash.edulEZE#$ 989/4. 9 9 8'C RIDERepor 3b A manager for a perfectly competitive firm likes cricket. There is an important game at MCG tomorrow that he would like to see live at the MCG. The business is otherwise running fine, and all explicit costs are (normally) recovered. You may assume that he has very high opportunity costs of attending office and he thinks he is better off not going to office tomorrow. Under the circumstances, is it possible for him to not attend office tomorrow? In other words, can he shut down and produce zero output. [Hint: Is this a short run or a long run decision?] A - BIU X2 X 123 G C evigilation.monash.eduIF# 1385FM. Report quest O 9 9 8.C AN ~