When a Union Bargains Successfully with Employers,in That Industry

question 15

Multiple Choice

When a union bargains successfully with employers,in that industry,

• A)both the quantity of labor supplied and the quantity of labor demanded increase.
• B)both the quantity of labor supplied and the quantity of labor demanded decrease.
• C)the quantity of labor supplied increases and the quantity of labor demanded decreases.
• D)the quantity of labor demanded increases and the quantity of labor supplied decreases.

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Definitions:

MB = MC

The optimal condition in economics where the marginal benefit (MB) of an action is equal to its marginal cost (MC), leading to efficient allocation of resources.

MB < MC

A condition where the marginal benefit of producing an additional unit is less than the marginal cost of producing that unit.

Decision Maker

An individual or group responsible for making choices or judgments, particularly in a professional or organizational context.

Total Profit Maximization

The process or strategy of adjusting production and sales to achieve the highest possible profit.