Firm E is a perfectly competitive firm that sells sandwiches. Firm E currently is taking in $50,000 in revenues, and has $15,000 in explicit costs and $25,000 in implicit costs. a) Calculate the economic profit. b) Given the above information, which of the following statements about this market for sandwiches is true?  1) The price of sandwiches in this market will decrease in long run. 2) The price of sandwiches in this market will increase in long run. 3) All firms in this market will make an economic profit in long run. 4) The market supply will decrease in long run.

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