Multiple Choice
Consider a labor market with two sectors-a union sector and a non-union sector-with perfectly inelastic labor supply. The presence of the union sector causes all of the following results except:
A) the union wage is greater than the competitive wage when there is no union sector.
B) the nonunion wage is less than the competitive wage when there is no union sector.
C) fewer workers are hired in the union sector than those same firms would hire if there was no union sector.
D) more workers are hired in the nonunion sector than those same firms would hire if there was no union sector.
E) total surplus added between the union sector and the nonunion sector is the same as total surplus when there is no union sector.
Correct Answer:

Verified
Correct Answer:
Verified
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