Refer to Scenario 9

question 275

Multiple Choice

Refer to Scenario 9.10 below to answer the question(s) that follow.
SCENARIO 9.10: Investors put up $1,040,000 to construct a building and purchase all equipment for a new cafe. The investors expect to earn a minimum return of 10 percent on their investment. The cafe is open 52 weeks per year and serves 900 meals per week. The fixed costs are spread over the 52 weeks (i.e. prorated weekly) . Included in the fixed costs is the 10% return to the investors and $2,000 in other fixed costs. Variable costs include $2,000 in weekly wages, and $600 per week in materials, electricity, etc. The cafe charges $6 on average per meal.
-Refer to Scenario 9.10. In the short run, if the cafe decides to stay open, it will make weekly operating profits of

Grasp the long-term impact of bargaining strategies on employer-employee-union relationships.

Differentiate between types of bargaining issues and their classification as zero-sum or constant-sum games.

Appreciate the importance of focusing on common interests in integrative bargaining to achieve mutually beneficial outcomes.

Understand the basic concepts and tactics of distributive and integrative bargaining within labor relations.

Definitions:

Disproportionate

Significantly uneven or out of balance in comparison to something else.

Excise Tax

A tax imposed on specific goods, services, or transactions, often aimed at reducing their consumption or generating revenue.

Polluting Firms

Companies that release pollutants into the environment as a byproduct of their activities, often subject to regulation and mitigation measures.

Excise Tax

A tax levied on specific goods or services, such as tobacco, alcohol, or gasoline, at the point of manufacture or distribution.