If a Union Sets the Wage Rate to Maximize the Total

question 71

Multiple Choice

If a union sets the wage rate to maximize the total wage receipts of its members, the marginal revenue would be

• A) zero.
• B) negative.
• C) positive, but greater than 1.
• D) positive, but less than 1.

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Definitions:

Labour Expenses

The total costs incurred by an organization in compensating its employees, including salaries, benefits, and other related expenses.

Labour Force

The total number of people employed or actively looking for employment in a specific area or economy.

Outsourcing

The practice of hiring third parties to perform services or create goods that were traditionally performed in-house by the company's own employees and staff.

Human Resources Accounting

Involves the identification, measurement, and reporting of investments in human capital and their economic impacts on an organization.