This chapter discusses companies that are oligopolists in the market for the goods they sell. many of the same ideas apply to companies that are oligopolists in the market for the inputs they buy. if sellers who are oligopolists try to increase the price of goods they sell, the goal of buyers who are oligopolists is to try to decrease the prices of goods they buy. major league baseball team owners have an oligopoly in the market for baseball players. the owners' goal is to keep players' , but this is difficult to achieve because

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.