Unions might increase efficiency in the case where they a. threaten a strike but don't actually...

Unions might increase efficiency in the case where they

a. threaten a strike but don't actually follow through, so there are no lost hours of work.

b. lower the wage of local outsiders.

c. offset the market power of a large firm in a "company town."

d. raise the wage for insiders above the competitive equilibrium.

Solutions

Expert Solution

Option "c" is correct i.e offset the market power of a large firm in a "company town."

Trade union refers to the association of workers who form a legal unit or legal personhood. Who act as bargaining agent or as a legal representative for all the employees .

So if union want to offsets the market power of a large for main a company town they can increase efficiency.

Rahul Sunny answered 1 year ago

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