• If a union bargains for benefits which increase the firm's quasi-fixed labour costs, employers will:

• A.prefer to increase employment levels by raising wages.
• B.prefer existing workers to work more hours rather than hiring new workers.
• C.prefer to hire workers with lower value marginal product.
• D.None of these.
• E.prefer to lay off more workers in times when product market conditions are poor.
• F.prefer to hire workers who are likely not to remain for many periods.