Which statement about unions is TRUE?
A) Laws allow unions to discriminate on the basis of gender and ethnicity.
B) Unions bargain for better working conditions at the cost of higher wages.
C) Unions cause a surplus of labour by bargaining for wages that are higher than the value of the marginal product of labour.
D) Unions cause compensating differentials.

Question

Quizplus · Accepted Answer

Unions can negotiate for higher wages, which may exceed the marginal product of labor, potentially leading to a surplus of labor.

Which Statement About Unions Is TRUE