This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: What is meant by capital stock? What will be an ideal response?[br][br][b][color=#9E3EA8]Question ... (Read 85 times)

Anajune7

  • Hero Member
  • *****
  • Posts: 574
on: Jun 29, 2018
What is meant by capital stock?
 
  What will be an ideal response?

Question 2

What are sticky prices, and how can contracts make them sticky?
 
  What will be an ideal response?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

succesfull

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jun 29, 2018
Answer to Question 1

For a single firm, its capital stock is equal to the current market value of the firm's plant, equipment, inventories, and intangible assets.

Answer to Question 2

Prices or wages are said to be sticky when they do not respond quickly to changes in demand or supply. Contracts are legal agreements between the firm and another party that establishes a particular price to be paid over a period of time. For example, a union contract is a legal agreement between the firm and the union that workers are to be paid a certain wage. If conditions change over the contract period, the firm still must pay the wage agreed upon in the contract. That can make this firm's wages sticky. Firms also buy raw materials on contract. This fixes the price at which the firm buys the raw material over the contract period, so it also becomes a sticky price.


Anajune7

  • Member
  • Posts: 574
Reply 2 on: Jun 29, 2018
:D TYSM

upturnedfurball

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Approximately one in three babies in the United States is now delivered by cesarean section. The number of cesarean sections in the United States has risen 46% since 1996.

Did you know?

Dogs have been used in studies to detect various cancers in human subjects. They have been trained to sniff breath samples from humans that were collected by having them breathe into special tubes. These people included 55 lung cancer patients, 31 breast cancer patients, and 83 cancer-free patients. The dogs detected 54 of the 55 lung cancer patients as having cancer, detected 28 of the 31 breast cancer patients, and gave only three false-positive results (detecting cancer in people who didn't have it).

Did you know?

All patients with hyperparathyroidism will develop osteoporosis. The parathyroid glands maintain blood calcium within the normal range. All patients with this disease will continue to lose calcium from their bones every day, and there is no way to prevent the development of osteoporosis as a result.

Did you know?

Acute bronchitis is an inflammation of the breathing tubes (bronchi), which causes increased mucus production and other changes. It is usually caused by bacteria or viruses, can be serious in people who have pulmonary or cardiac diseases, and can lead to pneumonia.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

White Blood Cells Involved in Immune Response White Blood Cells Involved in Immune Response
Capital’s Share of Income in a Cross-Section of Countries Capital’s Share of Income in a Cross-Section of Countries
Can anyone help me with this matching question Can anyone help me with this matching question
A(n) _____ is a spur-of-the-moment question. Fill in the blank(s) with correct word A(n) _____ is a spur-of-the-moment question. Fill in the blank(s) with correct word
chem question chem question
Question Question
Video: Regulation of GFR: autoregulation via myogenic mechanism Myogenic mechanism

For a complete list of videos, visit our video library