Why do unions that have few or no minimum wage workers work to raise the minimum wage? O To drive as many companies as they can into bankrupty. Trick question- unions don't do this. Because low skill, low paid workers are potential competitor workers for their union members. Because they may get more minimum wage workers in the future

Why do unions that have few or no minimum wage workers work to raise the minimum wage? O To drive as many companies as they can into bankrupty. Trick question- unions don't do this. Because low skill, low paid workers are potential competitor workers for their union members. Because they may get more minimum wage workers in the future

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter16: The Markets For Labor, Capital, And Land

Section: Chapter Questions

Problem 15P

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Similar questions

Do unions typically oppose new technology out of a fear that it will reduce the number of union jobs? Why or why not?
What is the marginal cost of labor for a firm that operates in a competitive labor market? How does this compare with the MCL for a monopsony?
Are unions and technological improvements complementary? Why or why not?
D0 countries with a higher percentage of unionized workers usually have less growth in productivity because of strikes and other disruptions caused by the unions? Why or why not?
What determines the demand for labor for a firm operation in a perfectly competitive out market?
Table 14.12 shows the quantity demanded and supplied in the labor market for driving city buses in the town of Unionville, where all the bus drivers belong to a union. What would the equilibrium wage and quantity be in this market if no union existed? Assume that the union has enough negotiating power to raise the wage to 4 per hour higher than it would otherwise be. Is there now excess demand or excess supply of labor?
Would you expect the presence of labor unions to lead to higher or lower pay for worker-members? Would you expect a higher or lower quantity of workers hired by those employers? Explain briefly.
What determines the demand for labor for a firm with market power in the output market?