Expenditures After Acquisition Listed below are several transactions:
Required:
Classify each transaction as either a revenue expenditure, a capital expenditure, or neither.
a. Paid $80 cash to replace a minor part of an air conditioning system.
b. Paid $40,000 to fix structural damage to a building.
c. Paid $8,000 for monthly salaries.
d. Paid $12,000 to replace a manual cutting machine with a computer-controlled machine.
e. Paid $1,000 related to the annual painting of a building.

answer: marginal utility of the fourth brownie is 0.

explanation: marginal utility is the addtional utility gained from the consumption of one more unit of a good. it is given by,

so, marginal utility at the 4th unit will be given by

since, the values are not given here, you can simply find marginal utility at fourth unit by subtracting total utility at 3rd unit from total utility at 4th unit.

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.