MICROECONOMICS (LL) W/CONNECT
21st Edition
ISBN: 9781260583540
Author: McConnell
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Question
Chapter 17.A, Problem 1ARQ
To determine
Whether the given statement is true or false.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
4. Inclusive, or industrial, unions - Negotiating a higher industry wage
Consider the housing construction industry. Assume that the industry is perfectly competitive in both input and output markets. Suppose that, through
collective bargaining, a labor union negotiates an industry-wide wage for various kinds of labor (electricians, plumbers, and so on). In particular, it
succeeds in negotiating a wage increase for carpenters from $9 to $12 per hour.
The following graph shows the labor demand of an individual firm.
On the following graph, show what happens at the firm level as a result of the union negotiations.
18
15
Demand
12
Supply
Supply
Demand
3
10
15
20
25
30
QUANTITY OF LABOR
---- ---
Co
WAGE RATE
Which statement is false regarding unions?
O a) With unions successfully raising wages for workers, it can also reduce overall
employment.
b) When unions drive up wages for workers, it results in an incentive for firms to
hire more workers.
OC) Unions drive up wages and benefits for workers by asserting market power
over employers.
O d) It is possible that raising wages for union workers can lead to higher
productivity than nonunion workers because union workers are more likely to
stay on the job longer.
Which of the following is a method used by unions to increase the demand for their members' labor?
O A. Decrease the marginal product of union members.
O B. Oppose minimum wage laws.
OC. Oppose immigration restrictions.
O D. Support import restrictions.
O E. Increase imported goods and services
Chapter 17 Solutions
MICROECONOMICS (LL) W/CONNECT
Ch. 17.3 - Prob. 1QQCh. 17.3 - Prob. 2QQCh. 17.3 - Prob. 3QQCh. 17.3 - Prob. 4QQCh. 17.A - Prob. 1ADQCh. 17.A - Prob. 2ADQCh. 17.A - Prob. 3ADQCh. 17.A - Prob. 4ADQCh. 17.A - Prob. 1ARQCh. 17.A - Prob. 2ARQ
Ch. 17.A - Prob. 3ARQCh. 17.A - Prob. 4ARQCh. 17.A - Prob. 1APCh. 17.A - Prob. 2APCh. 17 - Prob. 1DQCh. 17 - Prob. 2DQCh. 17 - Prob. 3DQCh. 17 - Prob. 4DQCh. 17 - Prob. 5DQCh. 17 - Prob. 6DQCh. 17 - Prob. 7DQCh. 17 - Prob. 8DQCh. 17 - Prob. 9DQCh. 17 - Prob. 10DQCh. 17 - Prob. 1RQCh. 17 - Prob. 2RQCh. 17 - Prob. 3RQCh. 17 - Prob. 4RQCh. 17 - Prob. 5RQCh. 17 - Prob. 6RQCh. 17 - Prob. 7RQCh. 17 - Prob. 1PCh. 17 - Prob. 2PCh. 17 - Prob. 3PCh. 17 - Prob. 4PCh. 17 - Prob. 5P
Knowledge Booster
Similar questions
- 2arrow_forwardThe marginal expenditure of a monopsonist is $9. The wage it currently pays is $3. The labor supply curve has a constant elasticity. What is the elasticity of the labor supply? * O 3 O 1 0.33 0.5arrow_forwardYour answer to the previous question can be explained by the differences in the Marginal Cost and Average Total Cost faced by a monopsony vs a perfectly competitive firm. A monopsony's Marginal Cost curve shifts upward, compared to a perfectly competitive firm. A monopsony's ATC curve shifts down and left, compared to a perfectly competitive firm. Why is that the case? O Higher MC curve: A perfectly competitive firm faces an increasing wage. A monopsonist faces a decreasing wage as labor increases Lower ATC curve: By restricting the quantity of labor employed, a monopsonist can lower its average total cost, and earn positive profits O Higher MC curve: A perfectly competitive firm faces a constant wage. A monopsonist has to pay a higher wage as it hires less labor Lower ATC curve: By increasing the quantity of labor employed, a monopsonist can lower its average total cost, and earn positive profits Higher MC curve: A perfectly competitive firm faces a higher price on inputs, and a…arrow_forward
- The demand for a monopoly's output is p = 50 - Q. A single firm in this industry has a production function of Q = 1.5L. Which of the following is the firm's demand for labor? O A. D₁ = MRPL = 50-1.5L O B. DL MRP = 4.5-75L OC. DL= MRP = 50-1.5L O D. DL= MRP = 75 -4.5L The firm can hire labor from a competitive labor market at a wage of $15 per hour. How much labor does the firm use? The monopoly will hire workers. (Round your answer to two decimal places.)arrow_forwardCan someone please help me with this question?arrow_forwardWhich external sources of recruitment are commonly used by the big enterprises that you believe are more effective and less effective to acquire new talent/employee. Explain your answer. (the following external sources of recruitment that are commonly used by the big enterprise are listed in the picture)arrow_forward
- 5 MC Qu. 16-35 (Algo) Refer to the given table.... Employment 0 1 2 3 4 S 6 Multiple Choice O O Total Product 0 Refer to the given table. If the firm is hiring workers under purely competitive conditions at a wage rate of $38, it will employ O O 12 22 30 36 40 42 Tworker 2 workers. 3 workers Product Price $5 Sworkers 5 5 5 5 5 5 0arrow_forwardTyped please and Asap thanksarrow_forwardhe.2arrow_forward
- Figure 13.5 Wage (S) 200- 180- 160- 140- 120- 100 80 60- 40 20 0 MR 10 20 30 40 50 60 70 80 Quantity of labor Reference: Ref 13-7 MC (Figure 13.5) The figure represents a labor union with wage in dollars and quantity of labor in hundreds of hours. If the labor union chooses to maximize total wages, how many workers will it supply? Select one: O A. 4,000 OB. 2,750 O C. 5,000 D. 8,000arrow_forwardSuppose that there are two sectors in the economy : a unionized and a non - unionized one . The labor demand function in each sector is L = 500,000-25w . There are 500,000 people avail able to supply their labor and their decision doesn't depend on the wage . People in both sec tors are equally skilled and experienced for the job in either sector . Assume that the union sets a wage at the rate of $ 15,000 in the union sector . Hint : for these questions below , use posted textbook solutions file for the end - of - the chapter 10 exercises . 6a). Suppose that each sector decides to hire 50 % of the people available to work and supplying their labor . Calculate what the competitive market wage would be in this case . Show your calcu lations . Answer : 6b) . Calculate how many people will the unionized sector be able to employ at most . Show your calculations . Answer :arrow_forwardDemand and Supply of Labor by Firm A Output MPL No. of Workers ME 0 0 1 20 20 250 2 50 30 350 3 75 25 450 4 95 20 550 5 110 15 650 6 120 10 750 1. Firm A above is an example of? O perfectly competitive seller of its output monopolistic seller of its output 2. Firm A in wage scenario 1 is a? O perfectly competitive buyer of labor monopsonistic buyer of labor 3. In wage Scenario 1, how many workers should Firm A hire to maximize its profits? MRPL MR=20 400 600 500 400 300 200 Scenario 1 W = ME 400 400 400 400 400 400 Scenario 2 250 300 350 400 450 500arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax