If a company agrees to a union's demands,it can remain profitable over the long run
A)if it can transfer the high labour costs onto the customers.
B)if price increase is large.
C)if there is significant price competition in the industry.
D)if it competes on price instead of quality.

Question

Quizplus · Accepted Answer

A company can remain profitable over the long run if it can transfer the high labor costs onto the customers by increasing the price of its products or services, assuming the market can bear the increase without reducing demand significantly.

If a Company Agrees to a Union's Demands,it Can Remain