4 (10 Points) PRESENT WORTH ANALYSIS Solve the following problem using the present worth analysis for an interest rate of 15%. Alt. A Alt. B Alt. C Initial cost $10000 $15000 $12000 Annual Benefit/year 6000 10000 5000 Life in years 2 3 4 Salvage Value 1000 -2000 3000 Please note you need to show the steps for getting full credit. Just selecting the correct option without showing the steps will result in getting zero points. 4.1. The NPW for Alt. A is A) $7578 B) $15477 C) $1704 D) None of the options

answer; descriptive statistics;

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.