Hypotheses to explain the positive correlation between factor accumulation and production efficiency include each of the following except: a. the quality of a nation's institutions influences both factor accumulation and production efficiency. b. capital accumulation causes greater production efficiency. c. efficient economies make capital accumulation unnecessary. d. an efficient economy encourages capital (including human capital) accumulation.

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.