Assume a national brewing company loses market share to a lower-priced competitor. Assume also that the company's workers go on strike and are able to negotiate a hefty wage increase
As such, we can conclude, with certainty, that the combination of these two changes would cause the equilibrium price and quantity of the company's product to decrease. Indicate whether the statement is true or false
FALSE
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Government tax revenues ________ during an expansion and ________ during a recession, which leads to larger budget deficits during the ________ phase of the business cycle
A) decrease; increase; expansion B) decrease; decrease; expansion C) increase; decrease; expansion D) increase; decrease; recession E) increase; increase; recession
Safety Training One task of Mega Manufacturing's Human Resource Department is to perform periodic safety training at Mega's various plants. HR is run as a profit center with each plant manager paying for this safety training via a transfer price
Recently, some of the plant managers have been hiring outside firms for their safety training. HR has complained to corporate that they will have to lay off staff if this continues but the plant managers reply that they are maintaining their acceptable safety record at a lower cost. What does this imply about the transfer price?