In order to reduce labor supply, a union must be able to
a. do all of the following
b. force all employers in the industry to hire only union members
c. set wages
d. agree to wage concessions
e. increase union membership
Question 2
If production is subject to economies of scale,
a. countries can gain from trade if each nation specializes
b. one country will develop an absolute advantage in the production of all goods
c. higher output levels result in higher average production costs
d. one country will develop a comparative advantage in the production of all goods
e. countries cannot gain from trade
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