Question: Continue to assume that part - time employees at Giant Mart's Louisiana store succeed in their unionizing efforts. As a result, the employees' wages increase.
Continue to assume that parttime employees at Giant Mart's Louisiana store succeed in their unionizing efforts. As a result, the employees' wages increase. Assuming that all of the company's costs remain the same for example, shipping costs, merchandise costs, utility costs, and advertising costs and that the company's revenues remain unchanged, which of the following is the most likely result?
Multiple Choice
Giant Mart's total costs will decrease after unionization.
Giant Mart's profits will increase due to lower operating costs.
Giant Mart's profits will decrease due to its increased labor costs.
Giant Mart's total costs will remain unchanged after unionization.
Giant Mart's union will work with the company to increase its profit margin.
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