A labor union undertakes a training program for its members. The objective of the training program is to
A)increase substitute factor prices.
B)increase the marginal physical product of its members and therefore increase the demand for their services.
C)reduce the availability of substitutes for the product it produces.
D)lower the supply of its labor.
E)none of the above

Question

Quizplus · Accepted Answer

The objective of a training program undertaken by a labor union for its members is typically to increase the skills and productivity of its members. This, in turn, increases the marginal physical product of its members, making their services more valuable and in demand. This is why option B is correct.

A Labor Union Undertakes a Training Program for Its Members