If featherbedding raises the price of output produced by the union workers, it
a. increases employment at the firm and in the industry
b. decreases employment at the firm and in the industry
c. increases employment at the firm but may decrease it in the industry
d. decreases employment at the firm and increases it in the industry
e. increases employment at the firm but reduces the number of firms so that there is no net effect on industry employment
C
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Under what conditions does an oligopoly market result in the same outcome as perfect competition? What does this imply for the oligopoly's long-run profits?
What will be an ideal response?
If the government wants to borrow money to build new highways; then the
A) interest rate will be higher. B) quantity of funds available in the market will increase. C) private investment will decrease. D) All of the above.