1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Maslowich
2 years ago
13

For example, the sticky-wage theory asserts that output prices adjust more quickly to changes in the price level than wages do,

in part because of long-term wage contracts. Suppose a firm signs a contract agreeing to pay its workers $15 per hour for the next year, based on an expected price level of 100. If the actual price level turns out to be 110, the firm's output prices will
Business
1 answer:
djverab [1.8K]2 years ago
8 0

Answer:

The firm's output prices will increase, because will the firm can quickly adjusts the prices of goods to the new price level of 110, it will not have to do so with wages, since wages are fixed by a year contract.

This will result in comparatively lower labor costs with higher prices at the same time, which will likely result in more economic and accounting profit for the firm.

The opposite effect will be felt by workers, whose wage is not keeping up with inflation, meaning that their income is losing purchasing power.

You might be interested in
Before attempting to lift any material, _________.
andre [41]
Check its weight. Then it will be easier for us
4 0
3 years ago
Jim is in market Forbes a car that will last hombre 10 years and has saved up some money for the purpose of a car. What's the be
Rudik [331]
Ok this question is poping up a lot and I need to know if there are any options to choose from.
3 0
3 years ago
Georgia company (a u.s. firm) wants to export to the country of zumosa and conducts a country risk analysis. all country risk ch
artcher [175]
<span>Georgia company (a u.s. firm) wants to export to the country of Zumosa and conducts a country risk analysis. all country risk characteristics of Zumosa except a blockage of funds that are remitted by subsidiaries established in Zumosa should be examined for this purpose.</span>
8 0
3 years ago
What are consumer goods and how do they allow a country to become a mdc?
Reika [66]
Consumer goods are those goods that are purchased and used by consumers. Consumer goods are not used by manufacturers to produce other goods. In essence, consumer goods are ready for use since they have been taken through the production and manufacturing. For a country to have consumer goods it must trade with other countries either to acquire raw materials or trade in consumer goods. This trade process contributes greatly towards the development of LDC economies into MDC status.
6 0
3 years ago
Thompson Company incurred research and development costs of $100,000 and legal fees of $30,000 to acquire a patent. The patent h
wariber [46]

Answer:

b. 3,000

Explanation:

The computation of the  Patent Amortization Expense in the first year is shown below:

= Legal fees to acquire a patent ÷ estimated useful life

= $30,000 ÷ 10 years

= $3,000

Only the legal expense would be amortized in a year.

And, the lesser period of legal life i.e 20 years and useful life i.e 10 years would be taken in the computation part. So, the lesser time period would be considered i.e useful life of 10 years

7 0
3 years ago
Read 2 more answers
Other questions:
  • Suppose conditions arise in the sugar market that would lead to a competitive equilibrium price that is below 18.75 cents per po
    6·1 answer
  • In the actual economy, goods and services are purchased byA. households, but not firms or the government. B. households and the
    6·1 answer
  • A transaction in which things of value are traded by buyers and sellers
    5·1 answer
  • Jonas is a 60% owner of Ard, an S corporation. At the beginning of the year, his stock basis is zero. Jonas's basis in a $33,200
    14·1 answer
  • If you need $20,000 in your bank account in 6 years, how much must be deposited now? The interest rate is 10%, compounded contin
    13·1 answer
  • Companies can and often do use different costing methods for financial reporting and tax reporting. An exception to this is the:
    12·1 answer
  • Suppose the following information is available for Callaway Golf Company for the years 2022 and 2021. (Dollars are in thousands,
    13·1 answer
  • Felix, a single taxpayer, claimed $180 of state tax as an itemized deduction on his 2018 tax return. The total itemized deductio
    9·1 answer
  • g Duane Miller wants to know what price home he can afford. His annual gross income is $67,200. He has no other debt expenses an
    9·1 answer
  • Adham is interested to buy a pair of shoes, at Lazzado.com as follows:
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!