The following data for may has been provided by mccawley corporation. denominator level of activity 2,600 machine-hours budgeted fixed manufacturing overhead costs $ 53,820 actual level of activity 2,700 machine-hours standard machine-hours allowed for the actual output 2,800 machine-hours actual fixed manufacturing overhead costs $ 56,290 the budget variance for may

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.