The following present value factors are provided for use in this problem. periods present value of $1 at 12% present value of an annuity of $1 at 12% 1 0.8929 0.8929 2 0.7972 1.6901 3 0.7118 2.4018 4 0.6355 3.0373 cliff co. wants to purchase a machine for $72,000, but needs to earn a return of 12%. the expected year-end net cash flows are $29,000 in each of the first three years, and $33,000 in the fourth year. what is the machine's net present value?

previous business sales - c.

the correct answer is:     [c]:     " cyclical unemployment " .

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.