Suppose a powerful labor union negotiates a wage for its members above the equilibrium wage rate in a nonunionized market. A likely result of this is that
A. this firm will make up for the higher wage rate by expanding output.
B. the union will have difficulty recruiting new members.
C. not everyone who wants to work at the new wage will be able to find jobs.
D. union members will be able to work more overtime than before.
Answer: C
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