Speedy bikes couriers company prepared the following static budget for the year: static budget units/volume 5,000 per unit sales revenue $7.00 $35,000 variable costs 1.50 7,500 contribution margin 27,500 fixed costs 4,000 operating income/(loss) $23,500 if a flexible budget is prepared at a volume of 8,400, calculate the amount of operating income. the production level is within the relevant range.
a) $23,500
b) $12,600
c) $42,200
d) $4,000

answer; bootstrapping is your answer;

fractionally backed paper money

fiat money

paper money

metallic money

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.