Suppose the market for industrial workers has recently unionised and successfully negotiated a mandatory breaks every two hours.The market has the usual characteristics, with downward sloping demand and upward sloping supply.Which of the following statements regarding unionisation is true?
(i) mandatory breaks means each worker becomes less productive, shifting labour demand downwards
(ii) mandatory breaks means each worker becomes less productive, lowering the value of the marginal product of labour
(iii) mandatory breaks increases the non-monetary benefits of industrial work, leading to an increase in labour supply
A) (i) and (ii)
B) (ii) and (iii)
C) (i) and (iii)
D) (i) , (ii) and (iii)
Correct Answer:
Verified
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