​For the Following Question

question 29

Multiple Choice

​For the following question
Consider a simultaneous move game between a union and a company.If both the parties bargain hard,each would gain nothing.If only one party bargains hard the accommodating party gets a profit of $1 million while the bargaining party gets a $5 million,while if they both accommodate,they each get $3 million.
-​If the union leader has already sent strikers to the picket line before entering negotiations,the union has

• A)​Eliminated half of the strategies of the game
• B)Forced the firm to choose the best response in the union's best interest
• C)Made it in the firm's best interest to accommodate their requests
• D)​All of the above

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Definitions:

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at different price levels.

Plant Capacities

The maximum amount of products or services that a facility can produce over a given period of time under normal operating conditions.

Total Fixed Costs

The total of all expenses that stay the same, no matter the amount of goods or services produced by a company.

Inputs Variability

Inputs Variability refers to the fluctuations or variations in the factors of production used by firms in the production process, which can affect output levels and costs.