If New Manufacturers Enter the Computer Industry, Then, Holding All

question 304

Multiple Choice

If new manufacturers enter the computer industry, then, holding all other things constant,

• A)each "old" manufacturer must sell fewer computers than before.
• B)some "old" manufacturers must exit the industry.
• C)the equilibrium price of computers must rise.
• D)the equilibrium quantity demanded of computers must rise.

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Definitions:

Legal Union Federation

An umbrella organization created to represent the collective interests of multiple labor unions or workers’ associations according to legal statutes.

Convergence Thesis

A theory suggesting that industrial societies, regardless of their initial cultural, social, or economic differences, will eventually develop similar structures and values through the process of industrialization.

Labor Relations Practices

The wide range of strategies, policies, and activities employed by employers, employees, and their representatives to manage employment relationships.

Employer Association

An organization of employers united to promote their collective interests, often in negotiations with labor unions or in lobbying for policies favorable to employers.