If,beginning from a competitive labor market,some workers form a union and negotiate a higher rate for themselves,which of the following is likely to happen?

Question

Quizplus · Accepted Answer

When a union negotiates a higher wage, it often results in reduced employment in the union sector due to higher labor costs, causing some workers to move to the non-union sector where wages are lower but employment opportunities may be more available.

If,beginning from a Competitive Labor Market,some Workers Form a Union