The intersection of the marginal prices or wage and marginal factor cost determines the wage in bilateral monopoly.
Answer the following statement true (T) or false (F)
False
In a bilateral monopoly market, wages and employment aren't determined simply by supply and demand. Rather, economic outcomes must be determined by collective bargaining-that is, direct negotiations between employers and labor unions for the purpose of determining wages, employment, working conditions, and related issues.
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Which of the following is an example of a negative externality?
A. Bad weather reduces the size of the wheat crop. B. A reduction in the size of the wheat crop causes the income of wheat farmers to fall. C. Smoking harms the health of nonsmokers who are nearby. D. Smoking harms the health of the smoker. E. all of the above
Based on Figure 6.1, how much revenue will the government raise from a $0.25 per bushel tariff on soybean imports?
A) The government will raise $2.5 million. B) The government will raise $5 million. C) The government will raise $15 million. D) The government will raise $32.5 million. E) The government will see no increase in income; because the country is small, foreign firms will simply not serve it after the tariff is imposed.
Demand-pull inflation can be the result of
A. an increase in the Z factors. B. an increase in net taxes. C. an increase in government spending. D. all of the above.
The price of one nation's currency in terms of the currency of another nation is called the
A) IMF rate. B) fed funds ratio. C) exchange rate. D) discount rate.