Question
State whether true or false: The WS curve tends to diverge from the Labour Supply curve at higher levels of employment as the higher employment
State whether true or false:
The WS curve tends to diverge from the Labour Supply curve at higher levels of employment as the higher employment of unionised labour allows the union to derive a larger premium. The relative bargaining power of firms and unions is not a factor that determines the position of the WS curve with respect to the Labour Supply curve in the imperfect labour market model.
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