A labour union in the labour market is similar to a(n)__________ in the output market.

Question

Quizplus · Accepted Answer

A labour union in the labour market is similar to a cartel in the output market. Both are able to negotiate higher prices/wages for their members by limiting supply. A monopsony is a market with only one buyer, so this is not the best choice. A tax is a government intervention, not a market structure. A perfect competitor is a market structure where there are many buyers and sellers with no market power, which is not the case for a labour union. An oligopoly is a market structure where a few firms dominate the market, which is not a perfect analogy for a labour union.

A Labour Union in the Labour Market Is Similar to A(n)__________