Discuss How Unions Affect Prices Indirectly

question 37

Essay

Discuss how unions affect prices indirectly.
Unions affect prices indirectly through changes in productivity. Unions bargain for work rules that may limit the pace of production, restrict the types of jobs a particular individual can perform, or require a minimum number of workers to accomplish a certain task. Work rules may also increase productivity by increasing job security, which reduces labor turnover and makes workers more willing to learn new tasks and to train others in specific skills.

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