In a situation where the firms in an industry must negotiate with a single union, and only union labor can be hired, suppose the labor union manages to achieve, through collective bargaining, a union wage for its members above what the equilibrium wage would otherwise have been. Which of the following is most likely to result?
Select the correct answer below:
the union wage will be lowered by the firm
union workers will leave the union
an excess supply of workers will want union jobs
none of the above