Nutco is a cashew-processing firm that operates in the developing country of ecotopia. after procuring raw cashews from farms around the country, nutco processes them using a labor-intensive method. the workers at nutco recently demanded a 20 percent increase in their overtime wage rate. all members of nutco's labor union, which was a substantial proportion of the company's labor force, went on an unannounced strike when the management only agreed to a 5 percent hike. during negotiations that followed, the management informed the union leader that this was a take-it-or-leave-it offer. the union leader was not convinced and declared that the workers would not come back to work unless their demands were fully met. kurt whitman, nutco's human resources manager, however thinks that the strike will end soon because of the company's strong stand.
which of the following, if true, would suggest that the labor union's threat of not resuming work is credible? a. most firms cannot take advantage of economies of scale because the industry is highly fragmented. b. the yield of cashews this year was low due to unfavorable climatic conditions. c. the demand for labor in this industry has increased due to an increase in the demand for ecotopian cashews abroad. d. most of nutco's employees are migrant female workers who are willing to work for slightly lower wages. e. due to the occupational hazards of cashew-processing, the ministry of labor closely monitors the working conditions in this industry.