Some researchers have argued that alliances can be used to help firms evaluate the economic potential of entering into a new industry or market. a. Under what conditions will a firm seeking to evaluate these opportunities, need to invest in an alliance to accomplish this evaluation? b. Why couldn’t such a firm simply hire some smart managers, consultants, and industry experts to evaluate the economic potential of entering into a new industry?

answer; buyer guide;

answer; strategic planning;

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.