John is an entrepreneur who owns an auto body repair shop. John's business is booming, and his salary is rising. John's labor supply curve will be if the substitution effect is the income effect. upward sloping; smaller than horizontal; equal to downward sloping; smaller than vertical; greater than

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.