Which of the following is an example of countervailing power at work?
A) The government monopolizes the United States Postal Service.
B) Ford and General Motors join forces to raise prices.
C) Compaq and IBM merge.
D) Microsoft lowers price below cost to drive rivals out of business.
E) Big business is met across the bargaining table by big labor.

Question

Quizplus · Accepted Answer

Countervailing power refers to the balancing of power in negotiations or economic relationships, ensuring that no single entity has overwhelming control or influence. In this context, big business being met across the bargaining table by big labor represents an example of countervailing power, as it implies a balance of power between large corporations and strong labor unions, preventing either side from having undue dominance.

Which of the Following Is an Example of Countervailing Power