In a Basic Model of Wage and Employment Determination with a Monopoly

question 24

Multiple Choice

In a basic model of wage and employment determination with a monopoly union, the monopoly union stipulates the wage. The firm then responds by choosing an employment level that

• A)maximizes profit.
• B)minimizes labor costs.
• C)minimizes the wage.
• D)maximizes strike duration.
• E)maximizes output.

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Definitions:

Erosion

The wearing away of soil, sediment, and rock through the removal of material by running water, waves, currents, ice, wind, and gravity.

Weathering

Physical disintegration and chemical decomposition of rocks, sediment, and soil due to exposure to water and other chemical, atmospheric, and biological agents.

Sediment

Particles of rock, minerals, or organic materials that have been transported and deposited by water, wind, ice, or gravity.

Deposited

The process by which sediments, soil, and rocks are added to a landform or land mass, typically through the action of wind, water, or ice.