While Management Must Negotiate the Effects on Workers of a Decision

question 46

True/False

While management must negotiate the effects on workers of a decision to close a plant, the decision to close the plant itself is not a mandatory bargaining issue.

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Definitions:

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs.

Accounting Profit

The total revenue of a business minus the explicit costs of operating the business.

Implicit Costs

The opportunity costs associated with a company's use of resources that are not directly paid for or billed.

Implicit Cost

The opportunity costs that are not directly paid or incurred but represent the loss of alternative benefits when resources are used in a particular way.