Wetherald products, inc., has a pump division that manufactures and sells a number of products, including a standard pump that could be used by another division in the company, the pool products division, in one of its products. data concerning that pump appear below: capacity in units 59,500 selling price to outside customers $ 100 variable cost per unit $ 62 fixed cost per unit (based on capacity) $ 20 the pool products division is currently purchasing 4,900 of these pumps per year from an overseas supplier at a cost of $83 per pump. assume that the pump division is selling all of the pumps it can produce to outside customers. what should be the minimum acceptable transfer price for the pumps from the standpoint of the pump division?

answer; private store;

answerskimming;

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.