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Why do labourers have less bargaining power?

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Question

Why do labourers have less bargaining power?

Short Answer
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Solution

If a part-time worker works for a firm with monopsony power, they will have very low bargaining power. However, if workers join a trade union and achieve 100% density (i.e. everyone in the firm joins) then they have the capacity to influence the wage making process.

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Chapter 1: Factors of Production - Short Answer Type Questions [Page 35]

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Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 1 Factors of Production
Short Answer Type Questions | Q 55. | Page 35
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