For international businesses to achieve vertical differentiation, . a. foreign and domestic operations should be grouped in such a way that the company effectively serves the needs of all customers b. top level managers must emphasize flexibility and openness in organizational structure c. a hierarchy of authority must be created that clarifies the responsibilities of both domestic and foreign managers d. the global structure must allow decisions to be made in the most appropriate area of the organization

in terms of experimental research, mcdonald’s charging different prices in the two cities relates to

answerthe above statement is (true);

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.