Jim Jones, an industrial engineer from Tech, has improved the manufacturability of an existing product at MKBK Manufacturing Inc. in Cookeville. The improvement has resulted in a 10% reduction in processing time from 100 minutes to 90 minutes. However, the method requires an investment of $5,000. The product will be made at the rate of 4,000 for the first year and will be increased at the rate of 500 for the next three years. To justify the $5,000 investment, determine how much the reduction in processing time per hour is worth in dollars.

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.