Which of the Following Will Tend to Lower the Ability

question 648

Multiple Choice

Which of the following will tend to lower the ability of a union to increase the wages of its members?

• A) strong competition from nonunion labor
• B) threat of a strike
• C) increased demand for union labor
• D) all of the above

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Definitions:

Purely Competitive

Refers to a market structure characterized by a large number of buyers and sellers, where all firms offer identical products and there is free entry and exit.

Profit-maximizing Level

The output level at which a firm achieves the highest possible profit.

Short-run

In economics, a period wherein at least one input (like capital) is fixed, and firms can only adjust variable inputs (like labor).

Normal Profits

The level of profit necessary to keep a firm in a specific industry or market in the long run, equating to the firm’s opportunity costs.