​Use the Following Setup for Question

question 6

Multiple Choice

​Use the following setup for question
Consider a non-strategic game between a firm and its union.The value to the firm of getting the workers back to work is $5 million.The union's agreement value to get back to work is $5 million.The firm can hire nonunion workers,"scabs",so their disagreement value is 1 million and the union members can find temporary employment elsewhere,making the unions disagreement value $2million.
-​The union would have a better bargaining position in the negotiations if

• A)​The firm can hire individual workers at a lower wage
• B)The union has low wage workers who cannot afford to be off work
• C)The union has a strike fund to pay workers during work stoppage actions
• D)​The firm can easily replace workers with machinery

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