Chapter 12, Problem 15PAE

Microlith is a small firm whose product is identical to that of the other firms in the industry.  A quick check of its NAICS code group reveals that the 50-firm concentration ratio for the industry is 3%. What will be the effect of Labor costs rising across the industry?  Write a short narrative explaining how the market will adjust in the long run. Draw a neat 2-panel diagram illustrating the answer to 1b

How today’s unions help working people Giving workers the power to improve their jobs and unrig the economy Americans have always joined together—whether in parent teacher associations or local community organizations—to solve problems and make changes that improve their lives and their communities. Through unions, people join together to strive for improvements at the place where they spend a large portion of their waking hours: work. The freedom of workers to join together in unions and negotiate with employers (in a process known as collective bargaining) is widely recognized as a fundamental human right across the globe. In the United States, this right is protected by the U.S. Constitution and U.S. law and is supported by a majority of Americans.1 Over 16 million working women and men in the United States are exercising this right—these 16 million workers are represented by unions. Overall, more than one in nine U.S. workers are represented by unions. This representation makes…

The Taft-Hartley Act (Labor Management Relations Act) of 1947 did all of the following except:   Outlawed the use of secondary boycotts   Gave states the right to pass right-to-work laws   Prohibited employers from expressing their views and opinions on unionization   Required unions to bargain in good faith with management

Assuming perfect competition in the Labor Market, the following are likely effects coming from a Minimum Wage regulation, EXCEPT:   Question 3 options:   It will create a DWL   It will reduce the number of jobs available.   It will for sure benefit the workers that are the most in need.   It will increase the level of unemployment in the economy.

Bridge Coal Company is the only employer in a remote and mountainous region of the country, so the firm is the monopsony buyer of labour in the market. If the price of coal increases, then the firm's:   A. AE curve shifts leftward. B. AE curve shifts rightward. C. ME and AE curves shift rightward. D. ME curve shifts leftward. E. MV curve shifts rightward.

The demand for labor for a firm operating in a perfectly competitive output market equals ____. The demand for labor for a firm with market power in the output market equals ______. 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.

Suppose all firms in a perfectly competitive market structure are in long-runequilibrium. Then demand for the firms’ product increases. Initially, price andeconomic profits rise. Soon afterward, the government decides to tax most (but not all) of the economic profits, arguing that the firms in the industry did not earn the profits. Rather, the profits were simply the result of an increase in demand. What effect, if any, will the tax have on market adjustment?

State whether the following statements are correct or not and briefly explain why A. Diseconomies of scale justify horizontal expansion of firms into unrelated fields. B. Economies of scale lead to a downward sloping marginal cost curve C. Elasticity of demand remains constant throughout the product cycle.

​If a union threatens to strike during a peak demand period, it is more likely to   Group of answer choices ​Get laughed at ​All of these ​Have its conditions rejected Have its conditions accepted