Which of the Following Is Most Likely to Occur If

question 166

Multiple Choice

Which of the following is most likely to occur if a union can transfer profits from a unionized employer to union workers?

• A) The investment expenditures of the unionized employer will tend to fall.
• B) Employment in the nonunion sector will tend to fall.
• C) The costs of the unionized employer will tend to fall.
• D) The output of the unionized employer will tend to increase.

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Definitions:

Long Run

A period in economics sufficient for all markets to adjust, including prices, outputs, and wages, reflecting changes in economic conditions or policies.

Perfect Competitor

A theoretical market scenario where many firms sell identical products, where no single buyer or seller can influence the market price.

Long Run

A period in economics where all factors of production and costs are variable, and firms can enter or exit the market.

Perfect Competitor

A theoretical market structure where numerous small firms produce identical products, allowing no single firm to affect the market price.