Union leaders often claim that they must establish the union as a monopoly provider of labor in order to offset the market power of employers. This claim essentially states that unionized firms are

Question

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The claim made by union leaders suggests that employers have market power and act as monopsonies, meaning they are the sole buyer of labor in a particular market. By establishing the union as a monopoly provider of labor, it offsets this market power of employers and allows workers to negotiate better wages and working conditions. Therefore, the best choice is B, monopsonies.

Union Leaders Often Claim That They Must Establish the Union