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Bianca is conducting an experiment to determine how temperatures affect the productivity of employees. She has just completed the first phase of her experiment, in which she had a group of employees perform job-related tasks in a special room where the temperature was 10 degrees cooler than on the factory floor. The employees in the experimental group consistently outperformed employees in the factory. The Hawthorne effect suggests that the most likely reason for this improvement in performance is that the cooler working conditions allowed the employees in the experiment to work harder without getting tired.
Industrial Union
A labor union that organizes workers across various industries, rather than according to skill or trade.
Monopsonistic Employer
An employer who has significant market power in hiring or purchasing, allowing them to dictate terms to their suppliers, often leading to lower prices or wages.
Bilateral Monopoly
A market in which there is a single seller (monopoly) and a single buyer (monopsony).
Wage Rate
The amount of money paid for a specific quantity of labor, often expressed per hour or year.
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