Even Though Firms and Workers Can Both Benefit from Piece

question 132

Multiple Choice

Even though firms and workers can both benefit from piece rates, piece rates are sometimes not implemented because of:

• A) government regulation.
• B) a shortage of workers.
• C) issues of distrust.
• D) All of the answers are correct.

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Definitions:

Monopsonies

Market situations in which a single buyer substantially controls the market as the major purchaser of goods and services offered by many would-be sellers.

Bilateral Monopoly

A market structure where there is only one buyer (monopsony) and one seller (monopoly), leading to unique negotiation dynamics.

Monopsony

A market in which a single buyer has no rivals.

Collective Bargaining

The process by which employers and unions negotiate terms of employment, including wages, working hours, and working conditions, to reach a labor agreement.