A firm produces 12 different services and has capacity to service 360,000 customers per year. A total of 24 service workers are employed. If 270,000 customers receive service during a particular year, what is the capacity cushion during that year?

= 25%

Explanation:

Capacity cushion is the excess of the of the available capacity over and above the utilized capacity .This then can be expressed as a percentage by multiplying by 100.

Available capacity = 360,000 customers per year

Utilized capacity = 270,000 customers per year

Spare capacity = (available - utilized)/available × 100

                   = (360,000 - 270,000)/360,000 × 100

                    = 25%

25%

Explanation:

The capacity cushion is basically the spare operating capacity that a company has, and it includes all the different services that the company might offer, e.g. spare capacity of a factory, spare capacity of hotel rooms, spare capacity of web hosting, etc.

The capacity cushion is generally measured as a percentage of total operating capacity = [total operating capacity - total amount of services provided) / total operating capacity] x 100 = [(360,000 - 270,000) / 360,000] x 100 = (90,000 / 360,000) x 100 = 25%

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.