"If a union is only able to organize a few of the firms in an industry, it is unlikely that the union can substantially increase the wages of its members." This statement is
A) false; unions tend to be stronger when they concentrate on only a few producers in an industry.
B) false; the demand for unionized workers will be more inelastic if only a few firms in the industry are unionized.
C) false; all unions can increase the wages of their members.
D) essentially correct.

Question

Quizplus · Accepted Answer

If only a few firms in an industry are unionized, the union's bargaining power is limited, making it difficult to substantially increase wages without risking job losses to non-unionized firms.

"If a Union Is Only Able to Organize a Few