alleryStart learning →Through negotiation, a union achieves a union wage that is, relative to the equilibrium wage:
AUnrelated
BAbove it
CBelow it
DEqual to it
Answer & Solution
Correct answer: B. Above it
1. The point of bargaining is to move the wage.
2. The labor union negotiates with the firms on behalf of its members.
3. It achieves a union wage for its members.
4. That wage is above what the equilibrium wage would otherwise have been.
_Source: OpenStax Principles of Microeconomics for AP Courses 2e (CC BY 4.0), Ch 15 'Labor Markets and Income'_
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