Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then
A) employment in the union sector will increase.
B) the union must find a way to make union workers more productive.
C) the union must also negotiate a fringe-benefit package that the membership will like.
D) the union must find a way to ration jobs among the excessive number of workers who wish to work at the negotiated wage.
D
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The term "quantity demanded" refers to the
A) total amount of a good that is actually purchased during a given period of time. B) total amount of a good that people wish to buy, regardless of price. C) total amount of a good that purchasers wish to purchase at a given price during a given period of time. D) product of advertising, and is unrelated to price. E) entire relationship between desired purchases and possible prices.
If average costs of production decline with increases in output for a particular large firm in an industry:
a. many small firms will be more efficient than the single large firm in the industry. b. the single large firm will be more efficient than many small firms in the industry. c. product diversification will be necessary for the firm to spread its overhead. d. diseconomies of scale become significant as its output increases. e. its variable cost of production will exceed its fixed costs.