Exhibit 28-2

-Refer to Exhibit 28-2.One of the things that the labor union probably can do to convince management that the supply curve is S'S instead of SS is

Question

Exhibit 28-2
 
-Refer to Exhibit 28-2.One of the things that the labor union probably can do to convince management that the supply curve is S'S instead of SS is

Quizplus · Accepted Answer

The most effective way for the labor union to convince management that the supply curve is S'S instead of SS is to make a credible threat of a strike. This would show the management that the workers are willing to take collective action to achieve their demands, which could shift the supply curve to a higher wage rate. Asking workers to take a cut in fringe benefits would not necessarily convince management of a different supply curve, as it may only affect the labor demand curve. Maximizing the wage bill to the union or maximizing membership in the union would not necessarily shift the supply curve, as it depends on the labor market conditions and the negotiating power of the union. Thus, option A is the most appropriate choice.

Exhibit 28-2 -Refer to Exhibit 28-2.One of the Things That the Labor