Answer This Question on the Basis of the Following Information

question 218

Multiple Choice

Answer this question on the basis of the following information for a public good. P_a and P_b represent the prices that citizens (a) and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Q_c) of the public good. Q_s represents the quantity of the public good supplied by government at each of the collective prices. If only 1 unit of this public good is produced, then the marginal benefit is

• A) $3, and the marginal cost is $9.
• B) $4, and the marginal cost is $7.
• C) $6, and the marginal cost is $3.
• D) $9, and the marginal cost is $3.

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Definitions:

Grievance

Formal complaint filed by an employee or a union that management is violating some provision of a union contract.

Mediation

Dispute resolution process that uses a third party, called a mediator, to make recommendations for settling labor–management differences.

Strike

Temporary work stoppage by employees until a dispute is settled or a contract signed.

Lockout

Management decision to put pressure on union members by closing the firm.