If the Market Price Is Equal to the Average Variable

question 91

Multiple Choice

If the market price is equal to the average variable cost, the firm should:

• A) keep operating or shut down.
• B) increase the output.
• C) change fixed inputs.
• D) increase the price.

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Definitions:

Collective Bargaining

Negotiations between an employer and a group of employees aimed at agreements to regulate working salaries, working conditions, benefits, and other aspects of workers' compensation and rights.

Authorization Cards

Documents signed by employees to show support for union representation, often used in the process of forming or certifying a new union.

Bargaining Unit

A collection of workers who share common interests and are represented by a single union in negotiations with their employer.

NLRB

The National Labor Relations Board, a federal agency overseeing the enforcement of U.S. labor laws in relation to collective bargaining and unfair labor practices.