How Can the Bargaining Power of an Employer Be Exercised

question 33

Multiple Choice

How can the bargaining power of an employer be exercised during collective bargaining?

• A) through lockout of employees
• B) through organizing a strike vote
• C) through raising wages
• D) through legal injunction

---

Definitions:

Economic Profits

Profits exceeding the opportunity costs of a next best alternative, measuring the extent to which a firm has generated excess returns over its costs, including the cost of capital.

Cost of Capital

The rate of return a company must earn on its investments to maintain its market value and attract funds.

Break-Even Quantity

The number of units that must be sold to cover all fixed and variable costs, resulting in neither profit nor loss.

Break-Even Quantity

The number of units that must be sold for total revenues to equal total costs, resulting in no profit or loss.