Mcpherson corp. does not make an annual physical count of year-end inventories, butinstead makes weekly test counts on the basis of a statistical plan. during the year, saramullins, cpa, observes such counts as she deems necessary and is able to satisfy herselfas to the reliability of the client’s procedures. in reporting on the results of her examination, mullins: (1) can issue an unqualifi ed opinion without disclosing that she did not observe year-endinventories.(2) should comment in the scope paragraph as to her inability to observe year-end inventories, but can nevertheless issue an unqualifi ed opinion.(3) is required, if the inventories are material, to disclaim an opinion on the fi nancialstatements taken as a whole.(4) should, if the inventories are material, qualify her opinion.

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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.