Scenario 12-1 Suppose Jim and Joan Receive Great Satisfaction from Their Consumption

question 386

Multiple Choice

Scenario 12-1
Suppose Jim and Joan receive great satisfaction from their consumption of cheesecake.Joan would be willing to purchase only one slice and would pay up to $6 for it.Jim would be willing to pay $9 for his first slice,$7 for his second slice,and $3 for his third slice.The current market price is $3 per slice.
-Refer to Scenario 12-1.Assume that the government places a $4 tax on each slice of cheesecake and that the new equilibrium price is $7.How much tax revenue will be generated from sales to Jim and Joan?

• A) zero
• B) $4
• C) $8
• D) $12

Comprehend the dynamics and principles of labor-management relationships, including concepts like associational unionism and social movement unionism.

Recognize the strategies and campaigns used by unions to win bargaining rights and contracts.

Analyze the role of Human Resource (HR) managers in navigating economic downturns and enhancing organizational competitiveness through strategic labor relations.

Understand the critique and proposals for reforming U.S. labor law to enhance labor's bargaining power and worker protections.

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Definitions:

Profit Center

A segment or department within a business that is responsible for generating its own revenue and profit, assessed separate from other areas of the company.

Revenues

The total amount of money received by the company for goods sold or services provided during a certain time period.

Operating Income

Earnings from a company's core business operations, excluding income from investments and after operational expenses have been deducted.

Support Department Allocations

The process of distributing the costs of support departments (such as HR and IT) to producing departments based on predetermined criteria.