A strike
A) can be a rational response during the union-firm negotiation process.
B) is a Pareto optimal outcome.
C) hurts the firm's management and shareholders but not the union members.
D) is never in the best interest of the rank and file.
E) is always in the firm's best interest.

Question

Quizplus · Accepted Answer

A strike can be a rational response during the union-firm negotiation process as it is a tool used by unions to exert pressure on the firm to meet their demands or negotiate terms that are more favorable to the union members. Strikes are not inherently Pareto optimal, as they can lead to losses for both parties. They can hurt not only the firm's management and shareholders but also the union members due to lost wages and potential job losses. Strikes are not always in the best interest of the rank and file or the firm, as they can lead to financial losses and damage to relationships between employees and management.

A Strike