Pasha Company produced 50 defective units last month at a unit manufacturing cost of $30. The defective units were discovered before leaving the plant. Pasha can sell them "as is" for $20 or can rework them at a cost of $15 and sell them at the regular price of $50. Which of the following is not relevant to the sell-or-rework decision?

a. $20 selling price of defective units
b. $50 regular selling price
c. $30 manufacturing cost
d. $15 for rework
e. All of these choices are relevant.

The correct answer is : " c. $30 Manufacturing cost".

Explanation:

According to the scenario given above, $30 which is the manufacturing cost is not relevant to the sell-or-rework decision as the company may suffer a loss on the sale of goods.

Reworking on the defective units for $30 will lead to a manufacturing of $30 (previous manufacturing cost) plus reworking cost (current $30) which is total of $60. Thus, it seems to be a loss.

there is no following so id just amuse false

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.