If the market power of a labor union enables it to offset the market power of an oligopolistic firm, this is called
A) monopolistic competition
B) cartel pricing
C) price discrimination
D) contestable markets
E) countervailing power

Question

Quizplus · Accepted Answer

Countervailing power refers to the situation where the market power of one group (such as a labor union) is used to counterbalance the market power of another group (like an oligopolistic firm), leading to potentially more balanced outcomes in terms of wages, prices, and working conditions.

If the Market Power of a Labor Union Enables It