If a union seeks to maximize the total wage bill received by its members, then it
A)should seek to establish the highest possible wage rate.
B)should seek to establish the lowest possible wage rate.
C)will find that this cannot be done under any circumstances.
D)none of the above

Question

Quizplus · Accepted Answer

Maximizing the total wage bill involves finding a balance between wage rates and employment levels, not just setting the highest or lowest possible wage rate. High wages could lead to fewer jobs, while very low wages increase employment but decrease total income. The statement implies a strategy that considers more factors than just the wage rate, making the other options incorrect.

If a Union Seeks to Maximize the Total Wage Bill