The Demand for Union Labor Is Usually Determined by

question 123

Multiple Choice

The demand for union labor is usually determined by

• A) the number of union members.
• B) the strength of the union.
• C) the total value of the union labor in the production process.
• D) market conditions outside the union's direct control.

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Definitions:

Profit

The financial gain realized when the revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Price-taker Firm

A firm that has no control over the market price and must accept the prevailing market price for its products.

Marginal Revenue

The extra revenue generated by the sale of an additional unit of a product or service.

Marginal Cost

The cost of producing one additional unit of a product or service.