A Wage- Setting Union in a Monopsonistic Market

question 14

Multiple Choice

A wage- setting union in a monopsonistic market:

• A)can raise both wages and employment above the level set by the monopsonist.
• B)can raise wages above the level set by the monopsony but only if it allows employment to fall below the level set by the monopsonist.
• C)gains its wage and employment demands by presenting the employer with a perfectly inelastic supply of labour.
• D)can raise wages to what would be the competitive level but no higher.

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Definitions:

Bad Debts Expense

The cost reported by a company due to the unrecoverable credit it extended to its customers, representing expected losses from unpaid financial obligations.

Notes Receivable Account

An account on the balance sheet representing claims for payments from customers or other parties due within a year or more.

Dishonored Notes

Refer to promissory notes that have not been paid by the maker at maturity.