Answer:
Slope of short-run aggregate supply curve: wage-price flexibility
In the short run, some factors are fixed and some factors can vary and the costs incurred on fixed factors are constant. Thus, the price level does not change as fast as it could have been if all are variable resources.
However, if prices are subjected to the variation in the wages, then the price level will increase faster than the costs. If actual price level is below the expected level, then the nominal wage rate is more than the expected and vice-versa. This would result in a greater slope of the short-run aggregate supply curve, which means short-run aggregate supply curve will be relatively steeper.
In the short run, the wage rate and price level are sticky downward because fall in nominal wage of workers will reduce the incentive to work.
Hence, if the wage rate adjusts continuously to any change in price; then the aggregate supply curie is relatively steep, and when wage and price level are sticky, then the short-run aggregate supply curve will be relatively flat.
Answer:
The cost of goods available for sale is $74100.
Explanation:
The cost of goods available for sale is the total cost of the inventory that a business has available during a period of time for sale. The cost of goods available for sale is calculated by adding the beginning inventory with the cost of goods purchased.
The cost of goods purchased during the year = 60400 - 3000 - 1100 + 600 = $56900
The cost of goods available for sale = Beginning inventory + cost of goods purchased
The cost of goods available for sale = 17200 + 56900 = $74100
Answer: $96,500
Explanation:
Manufacturing cost includes all the costs that went into production in a period including direct costs and manufacturing overhead:
= Direct materials + Direct labor + Manufacturing Overhead
Manufacturing overhead = Beginning work in process + Factory overhead - Ending work in process
= 11,200 + 52,600 - 11,800
= $52,000
Manufacturing cost = 19,500 + 25,000 + 52,000
= $96,500
