-The Above Figure Shows the Market Demand Curve for Long-Distance

question 46

Multiple Choice

-The above figure shows the market demand curve for long-distance telephone calls.Suppose the marginal cost of a long-distance telephone call is 2¢ a minute for a call no matter how many minutes of calls are made and there are 3 firms in the industry.If the firms in the industry operate as perfect competitors,the price of a call is ________ per minute and if the firms in the industry operate as a monopoly,the price of a call is ________ per minute.

• A)2 cents;more than 3 cents and less than 4 cents
• B)more than 3 cents and less than 4 cents;more than 3 cents and less than 4 cents
• C)1 cents;2 cents
• D)2 cents;either equal to 4 cents or more than 4 cents
• E)either equal to 4 cents or more than 4 cents;2 cents

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Definitions:

Nonmajority Unions

Labor unions that represent a segment of employees and may not have exclusive bargaining rights for all workers in a particular workplace.

Minority

A group or category of people distinguished by physical or cultural traits, who are less numerous than the more dominant group in a society or community.

Labor-Management Cooperation

A collaborative effort between employers and employees to improve working conditions, productivity, and the overall success of the organization.

U.S. Labor Law

A body of laws, regulations, and judicial decisions that address the legal rights of, and restrictions on, working people and their organizations in the United States.