Acme Manufacturing is producing $4,000,000 worth of goods this year and expects to sell its entire production.

Question:

Acme Manufacturing is producing $4,000,000 worth of goods this year and expects to sell its entire production. It also is planning to purchase $1,500,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse. Find actual investment and planned investment if Acme actually sells
a. $3,850,000 worth of goods.
b. $4,000,000 worth of goods.
c. $4,200,00 worth of goods.
Assuming that Acme's situation is similar to that of other firms, in which of these three cases is output equal to short-run equilibrium output?