The Non-Union Wage Is Not the Same as the Wage

The non-union wage is not the same as the wage which would prevail in the absence of unions because of which of the following?

A) displaced union workers will force down wages in the non-unionised sector
B) union workers are more productive than their non-unionised counterparts
C) firms will substitute labour for capital in the non-unionised sector
D) non-union wages are determined by competitive forces and unionised wages are not

Correct Answer:

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