Making the production process more capital-intensive

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Suppose a union that represents some but not all of the employees in an industry is considering a strong push for increased pay for their members during the upcoming contract negotiations. However, they are concerned about the possibility that the companies in the industry will respond by making the production process more capital-intensive and, thus, hiring fewer union members. What factors should the union investigate in order to address this issue? Give a careful economic explanation.

Reference no: EM13860648

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