The Most Significant Factor Enabling Unions to Negotiate Increased Wages

question 70

Multiple Choice

The most significant factor enabling unions to negotiate increased wages for its members is likely:

• A) that unions increase the demand for labor.
• B) that unions decrease the supply of labor in the union sector.
• C) that unions increase the marginal product of labor.
• D) that unions increase the supply of labor in the union sector.

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Definitions:

Total Revenues

The total income received by a firm from selling its goods or services before any costs or expenses are subtracted.

Total Costs

The sum of all expenses incurred in the production of goods or services, including fixed and variable costs.

Constant Cost Industry

An industry in which the costs of production do not change as the industry's output changes.

Natural Monopoly

A market situation in which the average costs of production continually decline with increased output. In a natural monopoly, the average costs of production will be lowest when a single, large firm produces the entire output demanded by the marketplace.