Which Statement About Unions Is TRUE

question 96

Multiple Choice

Which statement about unions is TRUE?

• A) Laws allow unions to discriminate on the basis of gender and ethnicity.
• B) Unions bargain for better working conditions at the cost of higher wages.
• C) Unions cause a surplus of labour by bargaining for wages that are higher than the value of the marginal product of labour.
• D) Unions cause compensating differentials.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much of the revenue actually contributes to covering fixed costs.

Avoidable Fixed Costs

Costs that can be eliminated if a particular decision is made, such as discontinuing a product or service that is not contributing to profits.

Unavoidable Allocated Fixed Corporate Costs

Fixed expenses that are distributed across different departments or products within a company, and cannot be avoided or eliminated.

Contribution Margin

Contribution margin represents the portion of sales revenue that remains after variable costs are deducted, indicating how much contributes to covering fixed costs and generating profit.