If an Industrial Union Is Able to Negotiate a Wage

question 44

True/False

If an industrial union is able to negotiate a wage above the competitive market-clearing wage, employment in the industry will increase.

---

Definitions:

Perfect Competition

Perfect Competition is a market structure characterized by a large number of small firms, identical products sold by all firms, no barriers to enter or exit the market, and perfect knowledge of prices and technology.

Perfect Competitor

Describes a market scenario where numerous small firms compete against each other, and no single firm can influence the market price of goods and services.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded.

Product Differentiation

The process by which companies distinguish their products or services from others in the market to attract a specific target audience.