Where unions operate in otherwise competitive markets, they _______ economic efficiency.

Question

Quizplus · Accepted Answer

Unions may increase wages and benefits for their members, which can increase their job satisfaction and reduce turnover. However, these higher labor costs can make employers less competitive in the market, potentially leading to increased prices for goods or services or a decrease in profitability. Therefore, unions may decrease economic efficiency in competitive markets.

Where Unions Operate in Otherwise Competitive Markets, They _______ Economic