According to the economic theory of labor markets, if unions are successful in raising wages, with no accompanying increase in labor productivity, then which of the following is true ?
A) The quantity of labor demanded by profit-maximizing firms will decline.
B) The quantity of labor demanded by profit-maximizing firms will increase.
C) The quantity of labor supplied by workers will decline.
D) There will be a shortage of labor in the unionized labor market.
Correct Answer:
Verified
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