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Maslowich
3 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]3 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.

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A point inside the production possibilities curve represents a combination of goods that is
Savatey [412]

Answer: EFFICIENT

Explanation: Production possibility Curve or frontiers is a graphical representation of the combination of two goods to give an efficient output or outcome considering the prevailing market conditions.

Production possibility Curve is used by business managers to determine which product combination can a business organization derive maximum or efficient benefits. A point in the curve of the production possibility Curve represents/ shows a combination of goods that is efficient considering the prevailing market conditions.

8 0
3 years ago
Waterway Industries had net income for 2021 of $602000. The average number of shares outstanding for the period was 208000 share
bazaltina [42]

Answer:

Diluted earnings per share is $2.87

Explanation:

The extent to which the option would dilute the earnings per share to the extent of the difference between the option of price and the share market price.

The shares that are capable of dilute the earnings can be computed thus:

Market price-option price/market price*outstanding options shares

market price is $36

option price is $30

outstanding options shares is 12,600

($36-$30)/$36*12,600=2,100 shares

Diluted earnings per share=$602,000/(208,000+2100)=$2.87

5 0
3 years ago
Which of the following is most likely a topic of discussion in macroeconomics?an increase in the price of a hamburgera decrease
otez555 [7]

Answer:

a decrease in the unemployment rate

Explanation:

Macroeconomics is a branch of economics that studies the economy as a whole. Economic variables studied in macroenomics includes GDP, unemployment, inflation etc

Microeconomics is a branch of economics that studies the behaviour of economic agents- individuals and firms in the economy.

I hope my answer helps you

4 0
2 years ago
What would $250000 make per year in a savings account?
Mumz [18]
It would make you $7,500

because banks usually pay a person $0.03 for every dollar

250,000 times .03 equals 7,500
6 0
3 years ago
2.what are some of the reasons people don’t manage their money well for the future?
Flura [38]
1) They are young and not so smart o( just a saying), 2) They think they will be rich forever and forever be on top of the world, 3) Ignorance or following the wrong financial advice, 4) Instead of them wisely taking care of their finances, they put it in other people's hands, who of course abuse it as well or take advantage. :)
5 0
3 years ago
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