If Featherbedding Raises the Price of Output Produced by the Union

question 65

Multiple Choice

If featherbedding raises the price of output produced by the union workers, it

• A)increases employment at the firm and in the industry
• B)decreases employment at the firm and in the industry
• C)increases employment at the firm but may decrease it in the industry
• D)decreases employment at the firm and increases it in the industry
• E)increases employment at the firm but reduces the number of firms so that there is no net effect on industry employment

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