Author Question: Which of the following is true a. Increasing output always leads to increase in profits b. ... (Read 18 times)

jho37 · **on:** Jul 1, 2018

Which of the following is true
a. Increasing output always leads to increase in profits
b. Increasing outputs increase profits if price is above marginal cost
c. Increasing output increases profits if price is lea than marginal costs
d. Increasing output always decreases profits

Question 2

The union would have a better bargaining position in the negotiations if
a. The firm can hire individual workers at a lower wage
b. The union has low wage workers who cannot afford to be off work
c. The union has a strike fund to pay workers during work stoppage actions
d. The firm can easily replace workers with machinery