Which of the Following Factors Would Allow a Union to Raise

question 37

Multiple Choice

Which of the following factors would allow a union to raise wages while losing fewer jobs?

• A) The demand for output becomes more elastic due to world competition.
• B) Labor costs are a large share of the total cost of producing output.
• C) The opening up of other markets around the world where output can also be produced
• D) Modernizing plants is unlikely because the demand for output is not growing.

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Definitions:

Monopolistic Competition

A market structure characterized by many competitors selling products that are substitutes but differentiated from one another by branding or quality.

Entry Barriers

Conditions that prevent new competitors from easily entering an industry or area of business.

Large Number

A subjective term indicating a quantity significantly above what is considered average or standard.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power and product differentiation.