Which of the following statements about unions is TRUE?
A) Laws allow unions to discriminate on the basis of gender and ethnicity.
B) Unions bargain for better working conditions at the cost of higher wages.
C) Unions cause a surplus of labor by bargaining for wages that are higher than the value of the marginal product of labor.
D) Unions cause compensating differentials.

Question

Quizplus · Accepted Answer

Unions can negotiate for wages that exceed the marginal product of labor, potentially leading to a surplus of labor, as employers may hire fewer workers at the higher wage rate.

Which of the Following Statements About Unions Is TRUE