In the real world, wage negotiations typically do not drag on for years:
A. because the company can simply offer the split that would eventually occur if the two sides played all the rounds.
B. because neither a company nor employees can afford to not work for that long.
C. unless the employees play an ultimatum game using a union to negotiate.
D. None of these statements is true.
A. because the company can simply offer the split that would eventually occur if the two sides played all the rounds.
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Refer to Table 2-18. What is Minnie's opportunity cost of making a hat?
A) 1/5 of an umbrella B) 1/4 of an umbrella C) 4 umbrellas D) 10 umbrellas
All else constant, the choice of whether to use a labor-intensive production process or a capital-intensive one is depends on:
A) the absolute prices of capital and labor. B) the relative prices of capital labor. C) the type of market in which the firm operates. D) whether the economy is growing or shrinking.