Which of the Following Statements About Product Market Competition and Labor

question 7

Multiple Choice

Which of the following statements about product market competition and labor market competition is true?

• A)An organization that has higher labor costs than its product market competitors will have to charge lower average prices for products of similar quality.
• B)The upper bound placed by the labor market is more constrictive when labor costs are a larger share of total costs.
• C)Product market competition places an upper bound on labor cost whereas, labor market competition places a lower bound.
• D)Product market competition is the amount an organization must pay to compete against other companies that hire similar employees.
• E)Indirect payments are not considered while calculating the average cost per employee.

---

Definitions:

Dissenters

Individuals who express opinions that are in variance with those previously, commonly, or officially expressed.

Correct Majority

The larger part of a group that holds the accurate or right viewpoint or decision, especially in the context of consensus or voting.

Collectivist Societies

Societies that prioritize the group over the individual, emphasizing interdependence, cooperation, and social harmony.

Conformist

An individual who follows the rules, norms, and standards of a group in order to fit in, often at the expense of personal identity.