Union might increase efficiency in the case Where they?

3253EconomicsMedium

ALower the wage of local outsiders

BOffset the market power of a large firm that is the dominant employer in a region

CThreaten a strike but don’t actually follow through so there are not lost hours of work

DRaise the wage for insiders above the competitive equilibrium

Correct answer

B. Offset the market power of a large firm that is the dominant employer in a region

Explanation

The correct answer is Offset the market power of a large firm that is the dominant employer in a region.

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