New microelectronics testing equipment was purchased 2 years ago by mytesmall industries at a cost of $600,000. at that time, it was expected to be used for 5 years and then traded or sold for its salvage value of $75,000. expanded business in newly developed international markets is forcing the decision to trade now for a new unit at a cost of $800,000. the current equipment could be retained, if necessary, for another 2 years, at which time it would have a $5000 estimated market value. the current unit is appraised at $350,000 on the international market, and if it is used for another 2 years, it will have m& o costs (exclusive of operator costs) of $125,000 per year. determine the values of p, aoc, n, and s for this defender if a replacement analysis were performed today.

answer; dogs;

answer; conceptual skills;

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.