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A Single Union Firm in a Competitive Industry Otherwise Comprised

Question 18

Multiple Choice

A single union firm in a competitive industry otherwise comprised of nonunion firms:


A) will make economic losses if it pays a wage rate above its competitors
B) will pay a higher union wage advantage than unionized firms in less competitive industries
C) will make economic profits if it pays a wage rate equal to its rival firms
D) will produce more output than its rival firms

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