ABC company has two producing departments and three support departments. The following budgeted data pertain to these five departments: Allocate the overhead costs of the support departments to the producing departments using the step
(sequential) method. Bases for allocation are: maintenance – square footage, purchasing – purchase orders, and personnel – number of employees. (Round intermediate steps to four decimal places and the final answer to the nearest dollar)
Allocate in the following sequence: 1. Maintenance 2. Purchasing 3. Personnel
1. Total cost of Assembly (including its own overhead cost):
2. Total cost of Painting (including its own overhead cost):

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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.