discussionqst2a - LYON Answer True False or Uncertain and...

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LYON Answer True, False, or Uncertain and briefly explain why. 1. The invention of a synthetic substitute for wool will raise the price of mutton. 2. In the United States, real income per capita has risen over time, whereas the number of domestic servants per capita has fallen. This means that domestic service is an inferior good. 3. A cartel that maximizes the income of its members should distribute output among different members so as to equalize the average variable costs of different members. 4. A law preventing landlords from evicting nonpaying tenants will hurt the poor. 5. If apple trees were common property, then apples will be picked green and apple trees will be used for fire wood. 6. If a consumer’s income rises in the same proportion as a Laspeyre index of his cost of living, his real income is rising. 7. If a firm is operating in the region of falling marginal costs, it must be making losses, since marginal cost is then less than average cost. 8. A cartel, which allows its members to buy and sell output quotes, will have a larger net profit for all firms combined than one which does not. 9. The market price of a given share of stock does not represent the market value of that share because it is the price of only the shares that are traded, which is established in the market. Assuming that all the existing shares of stock were sold, then the price would be much lower. 10. “Since the elasticity measures variations in quantity (demanded or offered) divided by variations in price,
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discussionqst2a - LYON Answer True False or Uncertain and...

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