A strike, or the threat of one, is most likely to be effective when
A) demand for the firm's product is strong.
B) foreign competition for the product is high.
C) the firm has a high product inventory.
D) demand for the product produced by the union workers is highly elastic.

Question

Quizplus · Accepted Answer

A strike is most effective when demand for the firm's product is strong because the firm is more likely to suffer significant financial losses if production is halted, increasing the pressure to meet workers' demands.

A Strike, or the Threat of One, Is Most Likely