Pina Colada uses the straight-line method of depreciation. (2) Pina Colada uses the declining-balance method. The rate used is twice the straight-line rate. (3) Pina Colada uses the units-of-activity method and estimates that the useful life of the machine is 134,000 units. Actual usage is as follows: 2022 48,500 units
2023 37,500 units
2024 26,500 units
2025 21,500 units.

Required:
Calculate depreciation expense per mile under units-of-activity method.

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.