Labor and Management at Leo Trucking Cannot Seem to Agree

question 17

Multiple Choice

Labor and management at Leo Trucking cannot seem to agree upon a contract for the truck drivers. As each side contends that they are bargaining fairly, no agreement seems to be possible. The drivers are threatening to go on strike, and management knows that such a strike would prove to be costly.
-As both sides agree that they are competing over a fixed amount of resources, each side feels that what one side wins, the other loses. Based on this information, we can say that the two sides are engaged in ________.

• A) conciliation
• B) distributive bargaining
• C) mediation
• D) integrative bargaining
• E) arbitration

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Definitions:

Output

The quantity of goods or services produced in a given period of time.

Returns to Scale

The change in output resulting from a proportionate increase in all inputs (factors of production), where increasing, constant, and decreasing returns to scale can occur.

Long-Run Average Total Cost

The average cost per unit of output in the long term when all inputs can be varied by the firm and economies of scale have been reached.

Output

The total amount of goods or services produced by a company, industry, or economy within a given period.