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50
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quantity (thousands of copies)
offers
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the marginal-revenue and marginal-cost curves intersect at a quantity of
copies.
enter
on the previous graph, use the black triangle (plus symbols) to shade the area representing deadweight loss.
for you
the price it charges for a cop
if the author were paid $1 million instead of $800,000 to write the book, the publisher would
novel
suppose the publisher was not profit-maximizing but was concerned with maximizing economic efficiency, and the author of a novel was pai
$800,000 to write the book.
. (note: if the publisher e
hd inflation
in this case, the publisher would charge 3 for a copy of the novel and earn a profit of $
a loss, be sure to enter a negative number for profit.)
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answer founder's agreement;

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.