Owners and managers may be different people with different goals, and in the long run firms that do best are those in which the managers are allowed to pursue their own independent goals. must be the same people. may be different people with different but exactly complementary goals. may be different people with the same goals. may be different people with different goals, but in the long run firms that do best are those in which the managers pursue the goals of the owners.

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.