Firm A would hire 20,000 workers if the wage rate is $12 but will hire 10,000 workers if the wage rate is $15. Firm B will hire 30,000 workers if the wage is $20 but will hire 33,000 workers if the wage is $15. The workers in which firm are more likely to organize and form a union? Hint: You need to calculate the elasticity of labor demand.

Firm A would hire 20,000 workers if the wage rate is $12 but will hire 10,000 workers if the wage rate is $15. Firm B will hire 30,000 workers if the wage is $20 but will hire 33,000 workers if the wage is $15. The workers in which firm are more likely to organize and form a union? Hint: You need to calculate the elasticity of labor demand.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter11: Labor Markets

Section: Chapter Questions

Problem 2SQP

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