Refer to the above figure. Suppose there are L4 workers in the union. If the union wants to set a wage rate of W3, it must
A) determine which of its members will earn W3 and which will earn W1.
B) accept that L4 - L2 members will not be able to find work in the industry.
C) accept that L3 - L2 workers will have to get a lower wage equal to W2 and L4 - L3 workers will have to get a wage of W1.
D) determine the most efficient way to get the firms to accept the wage and hire all L4 workers.
B
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Employees at La Dola Inc often engaged in hasty decision making that resulted in losses for the company. Because employees were not individually accountable for their decisions, this trend continued
However, when the company introduced a policy of profit-sharing with its employees, they began scrutinizing their decisions carefully before implementing. Explain the reason behind the change in the employees' behavior.
If an economy's institutional production possibilities frontier (institutional PPF) shifts rightward, the economy's
A) natural unemployment rate rises. B) natural unemployment rate falls. C) Natural Real GDP declines. D) physical PPF shifts leftward. E) physical PPF shifts rightward.