Assume the Ajax Mining Company Hires 80 Percent of the Nonunion

question 64

Multiple Choice

Assume the Ajax Mining Company hires 80 percent of the nonunion labor force of Mother Lode, New Mexico. Also, suppose that this labor force is highly immobile. Economists would describe this employer as a(n)

• A) monopolist.
• B) oligopolist.
• C) monopsonist.
• D) monopolistic competitor.

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Definitions:

Selling Expenses

Costs incurred directly in the selling of goods or services, including advertising, sales staff salaries, and commission.

Shared Service Unit

An organizational unit that consolidates and provides specific services, such as HR or IT, to multiple departments within a company to improve efficiency and reduce costs.

Centralisation

The process of concentrating decision-making authority at higher levels of an organization, leading to centralized control.

Service Level Agreements

Formal contracts between service providers and customers that define the level of service expected from the provider.