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.
This painting depicts New Orleans in 1803, when the city was acquired—along with much of the modern
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