Interest is eligible to be capitalized as part of an asset's cost, rather than being expensed immediately, when: . the asset is self-constructed, rather than acquired. b. the interest is incurred during the construction period of the asset. c. the asset is a discrete construction project for sale or lease. d. all of these answer choices are correct.

The correct answer is letter "D": All of these answer choices are correct.

Explanation:

Capitalized interest is associated with debt used to make or construct the depreciable assets. For instance, a company that is constructing its own production facility and has to borrow funds to pay for it can capitalize on the interest paid on those funds. As a result, the interest can be capitalized as part of the asset's costs if the interest is incurred during the construction period, if the asset is constructed not acquired, and if the asset is an acceptable construction project that later could be leased or sold.

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.