If the Goal of the Union Is to Maximize Member

question 297

Multiple Choice

If the goal of the union is to maximize member income, then

• A) a wage rate will be set in the inelastic portion of the demand curve.
• B) a wage rate will be set at the point at which the elasticity of demand equals 1 and marginal revenue is positive.
• C) a wage rate will be set at the point at which marginal revenue equal zero.
• D) the supply of labor must be inelastic.

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Definitions:

Cost Of Goods Sold

Represents the direct expenses related to the production of goods sold by a company, including materials and labor costs.

Gross Profit Percentage

A financial metric that represents the gross profit as a percentage of net sales, indicating the efficiency of a company's production process.

Current Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its short-term assets.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business's normal operating cycle if longer than a year.