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If a Union Seeks to Maximize the Total Wage Bill

Question 21

Multiple Choice

If a union seeks to maximize the total wage bill received by its members, then it


A) should seek to establish the highest possible wage rate.
B) should seek to establish the lowest possible wage rate.
C) will find that this cannot be done under any circumstances.
D) should seek to establish the wage rate at the level where the price elasticity of demand for labor is equal to 1.

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