The union representing the bread makers at the Hostess Bread Company went on strike and demanded higher wages than what the firm wanted to pay
I. If the firm is in a competitive labor market the union can only raise wages by decreasing employment.
II. If the firm is a monopsony in the labor market the union can only raise wages by decreasing employment.
III. If the firm is a monopsony in the labor market the union can both raise wages and increase employment.
A) I only
B) II only
C) I and II
D) I and III
D
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Inflation was a problem during the Great Depression
Indicate whether the statement is true or false
Fully anticipated inflation occurs when
A) the actual inflation rate equals the anticipated inflation rate. B) the actual inflation rate is less than the anticipated inflation rate. C) the inflation rate is zero. D) the anticipated inflation rate and the unanticipated inflation rate are equal.