Afirm concludes a counterpurchase agreement with a foreign country for which it receives some counterpurchase credits for purchasing its goods. the firm does not want any foreign goods, however, so it sells the credits to a third-party trading house at a discount. the trading house finds a firm that can use the credits and sells them at a profit. this is an example of

Suppose farmer lane grows and sells cotton in a perfectly competitive industry. the market price of cotton is $1.64 per kilogram, and his marginal cost of production is $1.44 per kilogram, which increases with output. assume farmer lane is currently earning a profit. can farmer lane do anything to increase his profit in the short run? farmer lane: a. cannot do anything to increase his profit. b. may or may not be able to increase his profit. c. can increase his profit by raising his price. d. can increase his profit by producing more output. e. can increase his profit by shutting down.