Both the unionization and concentration ratios are measures of market power.

Question

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Both unionization and concentration ratios give an idea about the degree of power firms or workers have in a market. Unionization ratio represents the percentage of employees belonging to unions, and concentration ratio measures the market share of the largest firms in the industry. The higher the unionization or concentration ratio, the greater the market power, which can result in higher prices and reduce competition.

Both the Unionization and Concentration Ratios Are Measures of Market