Partners a and b have a profit and loss agreement with the following provisions: salaries of $40,000 and $45,000 for a and b, respectively; a bonus to a of 10% of net income after salaries and bonus; and interest of 15% on average capital balances of $40,000 and $60,000 for a and b, respectively. one-third of any remaining profits or losses are allocated to b and the balance to a.

if the partnership had net income of $52,000, how much should be allocated to partner a?

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;

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.