Diseconomies of scale are associated with

Xavier is a baseball player negotiating a contract to play for a team for one year. He is usually paid $10 million a year for playing, but the salary caps for his team means that he will have to be paid $5 million this year and the remainder next year. If the interest rate is 8 percent, how much should that remaining amount be next year?

A. $5.0 million B. $5.1 million C. $5.4 million D. $6.1 million

As a result of a shortage,

A. Producers reduce supply. B. Producers increase output and raise price. C. Government purchases decrease. D. Consumers increase demand for the product.