A union never wants to accept a negative marginal wage.
Answer the following statement true (T) or false (F)
True
When the marginal wage becomes negative, the implied wage loss to workers already on the job begins to exceed the wage of a newly hired worker; therefore a union would never want to accept a negative marginal wage.
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If Franco's Pizza Parlor knows that the marginal cost of the 500th pizza is $3.50 and that the average total cost of making 499 pizzas is $3.30, then
a. average total costs are rising at Q = 500. b. average total costs are falling at Q = 500. c. total costs are falling at Q = 500. d. average variable costs must be falling.
One problem with the consumer price index stems from the fact that, over time, consumers tend to buy larger quantities of goods that have become relatively less expensive and smaller quantities of goods that have become relatively more expensive. This problem is called
a. price-change neglect. b. unmeasured quality change. c. substitution bias. d. relative bias.