If a labor union wanted to employ all its membership it would most likely negotiate for a __________ than if it wanted to maximize the income of a limited number of union members.
A)wage that discounted for fixed costs
B)higher wage
C)wage that accounted for a percentage of sales revenues
D)lower wage
E)none of the above

Question

Quizplus · Accepted Answer

To employ all its membership, a labor union would likely negotiate for a lower wage to make hiring more members financially feasible for the employer. This approach increases employment among union members but may reduce the average income per member. Negotiating for higher wages could limit the number of members employed, as higher labor costs could lead employers to hire fewer workers.

If a Labor Union Wanted to Employ All Its Membership