Tutor, Inc. (TI) provides instructional services to its customers. TI charges $250 per student. The Company expects to serve 750 students during the coming year. All of the Company's expenses are fixed. Total annual fixed cost are projected to be $85,000. If the estimated number of students increase by 20%, net income will increase by: (Round your final answer to the nearest percent.)

37%

Explanation:

The computation is shown below:

In the first case,

The net income is

= Sales revenue - fixed cost

where,

Sales revenue = Number of  students × TI charges per student

                         = 750 students × $250

                          = $187,500

So, the net income is

= $187,500 - $85,000

= $102,500

Now on the second case

The net income is

= Sales revenue - fixed cost

where,

Sales revenue = Number of  students × TI charges per student

                         = 900 students × $250

                          = $225,000

So, the net income is

= $225,000 - $85,000

= $140,000

So, the percentage increase is

= ($140,000 - $102,500) ÷ ($102,500)

= 37%

answercold,maybe nuclear war;

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.