What explanations have economists offered for why firms don't raise prices when doing so would seem to increase profits? firms might not raise prices when doing so might increase profits because a. consumers find it unfair for firms to increase prices after an increase in demand. b. consumers find it unfair for firms to increase prices after an increase in costs. c. firms are not concerned about profit in the long run. d. the amount consumers wish to buy is unrelated to how much of the product other people are consuming. e. both a and b.

Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)