Which of the following statements is correct?A. The cash ratio measures a firm’s ability to pay long-term debt with its available cash and marketable securities. B. Holding extremely high levels of liquidity to guard against liquidity crises is an inappropriate goal for the firm. C. The quick (or acid-test) ratio measures a firm’s ability to pay off short-term obligations with long-term debt. D. The current ratio is a more stringent measure of liquidity than the quick (or acid-test) ratio.

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.