Which of the following is likely to happen if some workers form a union in a competitive labor market and negotiate a higher wage for themselves?

Question

Quizplus · Accepted Answer

When some workers form a union and negotiate a higher wage for themselves, it can lead to a surplus of labor in the union sector due to the higher wage attracting more workers than there are jobs available at that wage. Consequently, some workers may move to the nonunion sector where wages have not increased, seeking employment opportunities. This movement does not necessarily mean that the marginal product of labor will increase in the unionized sector, nor does it guarantee that competition will force up wages in the nonunion sector to match the union wage. Additionally, higher wages in the union sector do not automatically lead to an increase in employment within that sector, as employers may not be able to afford the higher wage for more workers. Lastly, the statement about a substantial decrease in total output is too extreme without further context on the scale of unionization and its impact on productivity and employment across sectors.

Which of the Following Is Likely to Happen If Some