Unions will have more bargaining power when there is little competition in the firm's product market.

Question

Quizplus · Accepted Answer

When there is little competition in the firm's product market, the firm will have more market power and may choose to pay lower wages and benefits to workers. Unions can increase their bargaining power by threatening strikes or other forms of disruption that could harm the firm's profits in such a market. Thus, when there is little competition, unions may have more leverage in negotiations with employers.

Unions Will Have More Bargaining Power When There Is Little