​Use the Following Setup for Question

question 57

Multiple Choice

​Use the following setup for question
Consider a non-strategic game between a firm and its union.The value to the firm of getting the workers back to work is $5 million.The union's agreement value to get back to work is $5 million.The firm can hire nonunion workers,"scabs",so their disagreement value is 1 million and the union members can find temporary employment elsewhere,making the unions disagreement value $2million.
-​The firm would have a better bargaining position if

• A)​The firm can easily replace the workers with machinery
• B)The workers are a critical part of the production process
• C)The workers are highly specialized and would not find employment elsewhere easily
• D)​Both A&C

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Definitions:

Monopoly Power

The ability of a business to control market prices and total market output due to the lack of competition.

Federal Government

The national level of government organization, having authority over broader issues that cross state lines, such as defense, foreign policy, and monetary policy.

Department of Justice

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.

Proposed Mergers

Plans or considerations for two or more companies to combine their operations, resources, or identities to achieve strategic objectives.