Oil spills such as bp’s very large 2010 oil spill in the gulf of mexico and the 2015 plains all american pipeline oil spill into the ocean near santa barbara, california, led to clean-up efforts that greatly increased purchases of boat services, various oil-absorbing materials, and other goods and services to minimize damage from the spill. use side-by-side firm and market diagrams to show the effects (number of firms, price, output, profits) of such a shift in demand in one such industry, such as boat services, in both the short run and the long run. explain how your answer depends on whether the shift in demand is expected to be temporary or permanent.

Speedy auto repairs uses a job-order costing system. the company’s direct materials consist of replacement parts installed in customer vehicles, and its direct labor consists of the mechanics’ hourly wages. speedy’s overhead costs include various items, such as the shop manager’s salary, depreciation of equipment, utilities, insurance, and magazine subscriptions and refreshments for the waiting room. the company applies all of its overhead costs to jobs based on direct labor-hours. at the beginning of the year, it made the following estimates: direct labor-hours required to support estimated output 20,000 fixed overhead cost $ 350,000 variable overhead cost per direct labor-hour $ 1.00 required: 1. compute the predetermined overhead rate. 2. during the year, mr. wilkes brought in his vehicle to replace his brakes, spark plugs, and tires. the following information was available with respect to his job: direct materials $ 590 direct labor cost $ 109 direct labor-hours used 6