Under conditions of imperfect competition in hiring labor,union efforts to increase wages:
A) will necessarily cause unemployment.
B) will necessarily reduce unemployment.
C) will strengthen the monopoly power of management.
D) may either increase or decrease the level of employment.

Question

Quizplus · Accepted Answer

Under imperfect competition, union efforts to increase wages may lead to a decrease in employment if employers are not able to pass the wage increase onto consumers or reduce other costs. However, it is also possible that higher wages could lead to increased consumption and demand for goods and services, which in turn could increase the demand for labor and lead to increased employment. Therefore, the impact of union efforts on employment levels is uncertain and may vary depending on the specific circumstances.

Under Conditions of Imperfect Competition in Hiring Labor,union Efforts to Increase