If a labor union specifies that certain jobs can only be done by certain people (for example, only electricians can do electrical work), it is most likely trying to
A)raise the elasticity of demand for its labor.
B)reduce the availability of substitute factors for its labor.
C)increase the marginal physical product of its members.
D)decrease the marginal physical product of its members.

Question

Quizplus · Accepted Answer

By limiting who can perform certain jobs, the labor union is reducing the availability of substitute factors for its labor, making it more difficult for employers to hire non-unionized workers or workers from other industries to do the same job. This strengthens the bargaining power of the union and increases the likelihood of higher wages and better working conditions for its members.

If a Labor Union Specifies That Certain Jobs Can Only