Problem
1, Business decision-makers sometimes argue that they cannot make a profit because of the excessive wage demands of unions. Suppose that a strong union in a highly competitive industry obtains for its members a 15 percent increase in wages.
a. Will the higher wage rates reduce the industry's rate of profit in the short run? In the long run?
b. Who will actually shoulder the burden of the higher wage rates?
2. "Union power to increase wages is highly dependent on the elasticity of demand for labor." Do you agree or disagree? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.