Which of the Following Is Correct with Regard to Industry

question 202

Multiple Choice

Which of the following is correct with regard to industry productivity?

• A)Productivity does not vary much across different industries.
• B)Productivity is not important to labour unions when they are negotiating a new collective agreement,but it is important to investors.
• C)Activities like social networking,and water cooler conversations reduce productivity.
• D)Increased productivity allows companies to pay workers higher wages without raising prices to consumers.
• E)All of these statements are correct.

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Definitions:

Marginal Revenue

The extra revenue gained from the sale of an additional unit of a product or service.

Perfect Competition

A market structure characterized by many buyers and sellers, freedom of entry and exit, and a homogeneous product.

Perfectly Elastic

A situation in economic theory where the quantity demanded or supplied of a good changes infinitely in response to any change in price.

Demand Curve

A diagram depicting how the demand for an item varies with its price, generally characterized by a downward trajectory.