Unions may increase efficiency in some circumstances because they decrease the cost of bargaining between labour and management.

Question

Quizplus · Accepted Answer

By having a union, there is a designated group that represents the needs and concerns of the workers. This can make negotiations more efficient and result in agreements being reached more quickly, as opposed to each worker negotiating individually with management. In this way, unions can decrease the cost of bargaining and improve efficiency.

Unions May Increase Efficiency in Some Circumstances Because They Decrease