Which of the following will limit the ability of a union to push the wages of its members much above competitive levels?
A) The presence of nonunion firms that produce the same product as the unionized labor.
B) Foreign competition in the market for the product produced by the unionized labor.
C) A highly elastic demand for the product supplied by the unionized labor.
D) All of the above.

Question

Quizplus · Accepted Answer

All of the above factors can limit a union's ability to push wages above competitive levels: nonunion firms can offer lower prices, foreign competition can reduce demand for the unionized product, and a highly elastic demand means consumers will buy less if prices rise.

Which of the Following Will Limit the Ability of a Union