Which of the following will tend to increase the ability of a union to increase the wages of its members?
A) Almost all of the firms in the industry are unionized.
B) Foreign competition for the product produced by the union labor is intense.
C) There is a reduction in the demand for union labor.
D) The demand for the product produced by the union labor is highly elastic.

Question

Quizplus · Accepted Answer

When almost all firms in an industry are unionized, the union has more bargaining power to negotiate higher wages, as there are fewer non-unionized alternatives for employers.

Which of the Following Will Tend to Increase the Ability