If a labor union can affect __________, it can affect its wage-employment tradeoff.
A)the availability of substitutes for the product it produces
B)availability of substitute factors
C)the fixed costs of the firm it works for
D)a and b
E)a, b, and c

Question

Quizplus · Accepted Answer

Labor unions can affect their wage-employment tradeoff by influencing the availability of substitutes for the product they produce and the availability of substitute factors of production. These factors can impact the demand for the union's labor and thus its bargaining power. Fixed costs, however, are typically not within a union's influence for affecting wage-employment tradeoffs.

If a Labor Union Can Affect __________, It Can Affect