Which of the Following Statements Is True of the Efficiency

question 11

Multiple Choice

Which of the following statements is true of the efficiency frontier?

• A) To maximize its profitability, a firm should avoid a position that lies on the efficiency frontier.
• B) Not all positions on the efficiency frontier are viable.
• C) The efficiency frontier is a function of the cost and revenue of a product.
• D) Positions inside the frontier are more efficient than the positions that are located on the frontier.
• E) It is always concave in shape because of diminishing returns.

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Definitions:

Labor Contract

An agreement between unions and employers regarding wages, working conditions, and other employment terms.

Unionization Process

The procedure through which employees in a workplace form or join a union in order to collectively negotiate with their employer regarding wages, work conditions, and other employment terms.

National Labor Relations Board

An independent US government agency charged with enforcing US labor law in relation to collective bargaining and unfair labor practices.

Certification Election

A process supervised by a regulatory body that allows employees to vote on whether or not they wish to be represented by a labor union.