Which of the following is correct?
a. In unionized industries, wages are below the level that would prevail in competitive markets.
b. The introduction of a union in an industry reduces the quantity of labor demanded in that industry, causes some workers in that industry to be unemployed, and reduces wages in the rest of the economy.
c. There is a strong consensus among economists that unions are bad for the U.S. economy.
d. All of the above are correct.
b
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If the price elasticity of demand is less than 1, a monopoly's
A) total revenue increases when the firm lowers its price. B) total revenue decreases when the firm lowers its price. C) marginal revenue is undefined. D) marginal revenue is zero.
Explain the income effect and the substitution effects of a price change for a normal good
What will be an ideal response?
Helium Sports produces shoes at a factory that is designed to work at the efficient scale of production using a combination of 2 machines and 400 workers. The cost of labor has recently increased by 25%. In the given situation, which of the following steps should the company take?
a. Helium Sports should reduce production quantity to keep costs under control. b. Helium Sports should lower prices on their shoes to increase demand. c. Helium Sports should make changes to lower the opportunity costs. d. Helium Sports should update the factory with machines that require fewer workers.
Consumer surplus describes a situation in which there is excess quantity supplied.
Answer the following statement true (T) or false (F)