Which of the Following Is Correct Regarding First Contract Arbitration

question 36

Multiple Choice

Which of the following is correct regarding first contract arbitration:

• A) It will be imposed whenever the union and the employer cannot negotiate a first agreement.
• B) It is available only on the application of the union.
• C) It could be used to achieve a significant breakthrough in a collective agreement.
• D) It discourages employers from taking unreasonable positions in negotiations.
• E) It forces employers to agree to union demands.

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Definitions:

Contribution Margin

The amount by which the sale of a product or service exceeds variable costs, indicating how much it contributes to covering fixed costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Costs

The additional cost incurred by producing one more unit of a good or service.

Average Costs

Total costs (fixed and variable) divided by the total quantity of output produced, representing the cost per unit of production on average.