The Term Compensating Wage Differential Refers To

question 94

Multiple Choice

The term compensating wage differential refers to:

• A)the bargaining capacity of a monoposonist in the labor market.
• B)wage differences that arise from differences in the risk involved in different jobs
• C)whether or not a firm offers a 401K plan to all its employees or just some employees.
• D)wage differences that arise from difference in productivity of the workers in a firm.
• E)the negotiating powers of the trade union.

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Definitions:

Vertical Integration

A strategy where a company expands its business operations into different steps on the same production path, such as when a manufacturer owns its supplier and/or distributor.

Horizontal Integration

A strategy where a company acquires, merges with, or becomes partners with other companies in the same industry at the same stage of production.

Legal Status

Pertains to the lawful recognition of an entity's existence by government authority, determining its ability to enter into agreements, sue, or be sued.

Acquiring Firm

A company that purchases or merges with another company, typically to expand its operations or enter into new markets.