If the Health Services Union Successfully Negotiates a Wage Increase

question 90

Multiple Choice

If the Health Services Union successfully negotiates a wage increase for its members,how does the wage increase affect the supply of health services?

• A)The quantity supplied increases.
• B)The supply decreases.
• C)The supply increases.
• D)The quantity supplied decreases.
• E)Both answers B and D are correct.

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Definitions:

Oligopolists

Firms within a market structure where a small number of companies have significant market control.

Collude

To cooperate secretly or illegally with others, typically to deceive or gain an unfair advantage.

Zero Profits

a situation where a firm's total revenues are exactly equal to its total costs, typically occurring in perfectly competitive markets in the long run.

Noncooperative Equilibrium

A situation in which individuals or firms choose their strategy based on the anticipation that others will act in their own self-interest, leading to an outcome where no participant can benefit by changing their strategy unilaterally.