A Labor Union Undertakes a Training Program for Its Members

question 116

Multiple Choice

A labor union undertakes a training program for its members. The objective of the training program is to

• A)increase substitute factor prices.
• B)increase the marginal physical product of its members and therefore increase the demand for their services.
• C)reduce the availability of substitutes for the product it produces.
• D)lower the supply of its labor.

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Definitions:

Direct Materials

The raw materials that are directly traceable to the manufacturing of a product and are integral to its production.

Direct Labour

The amount of effort contributed by employees who work directly on manufacturing a product or delivering a service.

Factory Overhead

Indirect costs associated with manufacturing, including costs of utilities, maintenance, and factory equipment depreciation.

Variable Expenses

Costs that change in proportion to business activity or output levels, such as materials costs and utility expenses directly linked to production.