Why do unionized firms have lower research and development budgets?
A) Higher labor costs compared to nonunion firms
B) Lack of skilled workers compared to nonunion firms
C) Less productive workforce compared to nonunion firms
D) Higher share prices compared to nonorganized firms

Question

Quizplus · Accepted Answer

Unionized firms tend to have higher labor costs due to collective bargaining agreements and other factors. As a result, they may allocate less funding to research and development in order to control costs.

Why Do Unionized Firms Have Lower Research and Development Budgets