A large profitable machine shop is planning to purchase special tools for fabricated metal products at $30,000. The tools are estimated to last for 7 years (NOT depreciable life) and provide a benefit of $6,000 per year. The maintenance costs for each year are $500. The salvage value of the tools are estimated to be $4,000 at the end of 7 years. The firm pays 34% income tax. The firm uses a MACRS depreciation schedule. Determine the NPW of the after tax cash flow assuming the MARR is 12%.

answerinnovative culture;

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.

16 i am positive

explanation: