Lo 2.2fixed costs are expenses that

vary in response to changes in activity level
remain constant on a per-unit basis
increase on a per-unit basis as activity increases
remain constant as activity changes

Business expenditures that are not proportionate to the number of services or goods provided by the company are fixed costs. These are sometimes linked to as manufacturing costs, like interest or rentals charged every month.

Fixed costs are often not patched on a continuous basis; they will evolve over time, and are fixed in regards to the amount of manufacturing for the corresponding time period by contractual agreement.

For instance, a business might have unavoidable and unforeseen manufacturing-related expenses, such as storage prices and so forth, just fixed over most of the lease term.

answer; post closing trial balance;

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.