If a labor union successfully practices collective bargaining against a monopsonist, then
A)product price will decrease.
B)both wages and employment may rise.
C)both wages and employment may fall.
D)workers will probably receive a wage further away from their marginal revenue products.

Question

Quizplus · Accepted Answer

Collective bargaining can result in higher wages and increased employment because the union can negotiate for better working conditions and higher pay for their members. A monopsonist may have more power to set wages and limit employment opportunities, but if the union is successful in negotiating with them, they can secure better terms for their members. However, it's important to note that the outcome of collective bargaining depends on numerous factors and may not always result in higher wages and increased employment.

If a Labor Union Successfully Practices Collective Bargaining Against a Monopsonist