Suppose a Powerful Labor Union Negotiates a Wage for Its

Multiple Choice

Suppose a powerful labor union negotiates a wage for its members above the equilibrium wage rate in a previously nonunionized market.A likely result of this is that:

A) the union will have difficulty recruiting new members.
B) union members will be able to work more overtime than before.
C) this firm will make up for the higher wage rate by expanding output.
D) not everyone who wants to work at the new wage will be able to find jobs.