Which of the following is a possible explanation for sticky prices?
Part 2
A.
It is illegal for firms to lower prices without the consent of the courts.
B.
Lack of union power to lower prices on products allows firms to maintain higher priced goods.
C.
All firms act as a cartel and maintain a constant non-competitive price.
D.
Labor contracts cause wages to be fixed over the contract period.
1 answer
D. Labor contracts cause wages to be fixed over the contract period.