Which of the following will limit the ability of a union to push the wages of its members much above competitive levels?
A) the presence of nonunion firms that produce the same product as the unionized labor
B) foreign competition in the market for the product produced by the unionized labor
C) a highly elastic demand for the product supplied by the unionized labor
D) all of the above

Question

Quizplus · Accepted Answer

All of the above factors limit the ability of a union to push wages much above competitive levels. Non-union firms can offer lower wages, foreign competition can produce the product more cheaply and elastic demand means that consumers are more likely to switch to a substitute if the price of the unionized product increases too much.

Which of the Following Will Limit the Ability of a Union