With a union,the total number of workers hired is where
A)Employment is lower than at the competitive equilibrium.
B)The marginal wage is negative.
C)Employment and wages are both at the maximum possible levels.
D)Employment could not be increased by reducing the wage rate.

Question

Quizplus · Accepted Answer

Unions often negotiate for higher wages than the competitive equilibrium, which can lead to employers hiring fewer workers to manage costs, resulting in lower employment compared to the competitive equilibrium.

With a Union,the Total Number of Workers Hired Is Where