If a union wishes to maximize the number of union members employed, it will
A) accept the competitive wage.
B) set a wage below the competitive wage.
C) set a wage where the elasticity of demand for labor equals one.
D) set a wage above the competitive wage.

Question

Quizplus · Accepted Answer

Accepting the competitive wage will ensure that the employer is able to hire the maximum number of workers at that wage level, thereby increasing the number of union members employed. Setting a wage below the competitive wage or setting a wage where the elasticity of demand for labor equals one may reduce the number of workers employed due to the high wage rate. Setting a wage above the competitive wage may lead to a decrease in demand for labor, resulting in reduced employment opportunities for union members. Therefore, accepting the competitive wage is the best choice for maximizing the number of union members employed.

If a Union Wishes to Maximize the Number of Union