Labor unions obtain higher wages for their members by reducing the profits of the business owners in the short run and in the long run.

Question

Quizplus · Accepted Answer

Labor unions may obtain higher wages for their members primarily through collective bargaining, which can lead to a redistribution of the firm's revenue towards wages. However, this does not necessarily reduce business owners' profits in the long run, as companies may respond by increasing productivity, raising prices, or finding other efficiencies to maintain profitability.

Labor Unions Obtain Higher Wages for Their Members by Reducing