Use the Following to Answer Questions

question 275

Multiple Choice

Use the following to answer questions:
-(Table: Demand Schedule for Gadgets) Look at the table Demand Schedule for Gadgets. The market for gadgets consists of two producers, Margaret and Ray. Each firm can produce gadgets at a marginal cost of $2 and no fixed cost. Suppose that these two producers have formed a cartel, agreed to split production of output evenly, and are maximizing total industry profits. If Margaret decides to cheat on the agreement and sell 100 more gadgets, how many gadgets will Margaret sell?

• A) 500
• B) 200
• C) 300
• D) 600

Identify and explain the advantages of market pricing in compensation.

Comprehend the concept of skill-based pay systems and the importance of skill blocks.

Understand the critical issues involved in designing competency-based pay systems.

Distinguish between pay for knowledge systems and job-based pay systems.

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Definitions:

Union Wage Premium

The difference in wages between workers who are union members and those who are not, typically showing higher wages for unionized workers.

Mainstream Economics

A body of economic thought or theories that are widely accepted and taught as the dominant or conventional approach to economic analysis.

Artificially High

A condition where prices or values are elevated above natural market levels due to external interventions or manipulations.

Democratic Unions

Unions that operate under democratic principles, allowing members to vote on major decisions, including leadership elections.