If a wage- setting union enters a monopsonistic labour market, the union can cause
A) wages to rise above the level set by the monopsonist, but only if it allows employment to fall below the level set by the monopsonist.
B) wages to rise to what would have been the competitive level but no higher.
C) wages or employment to rise above the level set by the monopsonist, but not both.
D) the level of non- wage benefits to rise but cannot affect either wages or employment.
E) both wages and employment to rise over the monopsonistic level.
Correct Answer:
Verified
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