 # Will a union behave differently if it wants to get all of its members employed instead of maximizing the total wage bill? Explain your answer. ### Microeconomics

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406 ### Microeconomics

13th Edition
Roger A. Arnold
Publisher: Cengage Learning
ISBN: 9781337617406

#### Solutions

Chapter
Section
Chapter 14, Problem 1QP
Textbook Problem

## Will a union behave differently if it wants to get all of its members employed instead of maximizing the total wage bill? Explain your answer.

Expert Solution
To determine

Identify the different behaviors of labor union.

### Explanation of Solution

The total wage bill is equal to the wage rate, which is multiplied by the number of labor hours worked. It will be maximized by selecting a wage-quantity combination at the point where the demand for labor is unit elastic. At that point, if the number of total workers is less than the number of union members, then the labor union will allow to cut down the wage rate to get employment to all of its members. Hence, the labor union will behave differently if it needs to get all of its members employed rather than maximizing the total wage bill.

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