​Use the Following Setup for Question

question 64

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.
-When buying a car from a dealer,to get a better bargaining position

• A)​Always carry your check book to show willingness to buy
• B)Carry only blank checks to ease the transaction
• C)Carry a cashier check that cannot be modified
• D)​All of the above

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Definitions:

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating a company’s fixed versus variable costs.

Variable Costs

Charges that adjust in direct proportion to the manufacturing output or the quantity of sales.

Fixed Costs

These are consistent expenses incurred by a business, regardless of production levels or sales volumes, such as rent or salaries.

Profit-Volume Chart

A chart plotting only the difference between total sales and total costs for various levels of units sold.