Multiple Choice

-Refer to the above figure. Suppose there are
workers in the union. If the union wants to set a wage rate of
, it must
A) determine which of its members will earn
and which will earn
.
B) accept that
-
members will not be able to find work in the industry.
C) accept that
-
workers will have to get a lower wage equal to
and
-
workers will have to get a wage of
.
D) determine the most efficient way to get the firms to accept the wage and hire all
workers.
Correct Answer:
Verified
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