Unions cannot exert market power without exerting control over the market supply curve for labor.

Question

Quizplus · Accepted Answer

Unions have the ability to influence the supply curve for labor by negotiating wages, benefits, and working conditions on behalf of their members. This can lead to an increase in wages and benefits for unionized workers, which may create a higher price for labor and a decrease in demand for it. This results in a shift of the labor supply curve and indicates the existence of market power for unions.

Unions Cannot Exert Market Power Without Exerting Control Over the Market