Identify the Statement Which Is True About Bargaining

question 35

Multiple Choice

Identify the statement which is true about bargaining.

• A)There is a strong relationship between bargaining power and education.
• B)The distribution of prices within the zone of agreement has a high standard deviation.
• C)Average final prices are often near the halfway mark between valuation and opportunity cost and there is hardly any deviation from this.
• D)There is a strong relationship between bargaining power and income.

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Definitions:

Long-Run

A period of time in economics during which all factors of production and costs are variable, allowing for complete adjustment to changes.

Average Total Cost

The sum of average variable costs and average fixed costs, or simply the total cost divided by the quantity of output produced.

Constant-Cost Industry

An industry in which the entry and exit of firms have no effect on the prices firms in the industry must pay for resources and thus no effect on production costs.

Resource Prices

The costs associated with acquiring the inputs or factors of production, such as labor, capital, and natural resources.