If a Union Is Able to Bargain for a Wage

question 106

Multiple Choice

If a union is able to bargain for a wage that is higher than the equilibrium:

• A) all workers will earn a wage equal to their value of marginal product.
• B) some excess supply of labour or unemployment will generally result.
• C) compensating differentials will be erased.
• D) diminishing returns will not exist.

---

Definitions:

Cost Center

A department or segment within an organization that does not directly contribute to profit but incurs costs.

Total Costs

The sum of all expenses incurred by a business in producing goods or services, including fixed and variable costs.

Specified Output

A defined amount or quality of work that must be produced, typically set as a target or requirement.

Division Profits

The earnings attributed to a specific division or segment within a larger company.