If a wage-setting union enters a monopsonistic labour market,the union can cause
A) wages to rise to what would have been the competitive level but no higher.
B) wages to rise above the level set by the monopsonist,but only if it allows employment to fall below the level set by the monopsonist.
C) both wages and employment to rise over the monopsonistic level.
D) wages or employment to rise above the level set by the monopsonist,but not both.
E) the level of non-wage benefits to rise but cannot affect either wages or employment.
Correct Answer:
Verified
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