Metlock marina has 300 available slips that rent for $700 per season. payments must be made in full by the start of the boating season, april 1, 2018. the boating season ends october 31, and the marina has a december 31 year-end. slips for future seasons may be reserved if paid for by december 31, 2018. under a new policy, if payment for 2019 season slips is made by december 31, 2018, a 5% discount is allowed. if payment for 2020 season slips is made by december 31, 2018, renters get a 19% discount (this promotion hopefully will provide cash flow for major dock repairs).

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.