(24 points) .True, false or uncertain. Explain your answer.

(24 points) oruncertain. Explain your answer. (a) (3 points) There areonlytwo goods, and y.lfaconsumer'sincome elasticity ofdemandfor good xis negative, theconsumer's own-price elasticity of demand for good y mustbe negative:e (b) (3 points) a perfectly competitive markethas marginal costs twice thoseofFirmAinthesame market, andboth maximize profit, Firm B will earn halfthe profit ofFirm A.oe (c) (3 points) For a profit-maximizing monopolistfacing adownward- sloping lineardemand curve, an increase-in marginalcostleadsto a decreasein markup. (d) (3 points) A monopolistfacing a downward-slopingdemand curve will never sell its productto customers at marginal cost. (e) (3 points) A firm'sdemand curve-forlaboris more elastic when capital is also a variableinput. Youcan assume that-the labor market and the capital market areboth perfectly competitive. (f) (3 points) Ifconsumersinan economyhaveheterogeneous preferences, then evenifthe input and output-markets are perfectly competitive, the production can neverbe output efficient, as the condition MRT=MRS cannothold simultaneouslyfor all consumers. (g) (3 points) Ifall agentshave convex preferences, then any Pareto efficient allocation canbe supported as a market equilibriumfor a given setofendowments. (h) (3 points) Thegovernmentcompensating efficientsolutionto air pollution.v