The wage theory that states that differences in wage rates are determined by collective bargaining is the
a. traditional theory of wage determination.
b. theory of equilibrium wage rate.
c. theory of negotiated wages.
d. signaling theory.
The correct answer for the question that is shown above is this one: "c. theory of negotiated wages." The wage theory that states that differences in wage rates are determined by collective bargaining is the theory of negotiated wages. Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions.
