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If a union is successful in negotiating a wage rate which is above the market clearing wage, then which of the following would not occur?
If a union is successful in negotiating a wage rate which is above the market clearing wage, then which of the following would not occur? The higher wages attract more workers leading to a shortage of jobs. Management may replace part of the workforce with machinery. To handle the surplus of labor the union will form a closed shop. The union may shift the supply of labor curve by developing methods to ration jobs
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