In Final Offer Arbitration, the Arbitrator Is Not Constrained in Deciding

question 141

True/False

In final offer arbitration, the arbitrator is not constrained in deciding the settlement terms and can create any terms he or she deems fair.

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Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given time period.

Perfectly Inelastic

Refers to a scenario in which the amount demanded or supplied shows no reaction whatsoever to changes in price.

Total Revenue

The total amount of money earned by a business from the sale of its goods and services.

Price-elastic

Refers to the responsiveness of demand or supply to changes in price, with high elasticity indicating significant response to price changes.