If a union gains significant monopoly power in a competitive market, employment:
A. should decrease and wages should increase.
B. should increase and wages should decrease.
C. and wages should increase.
D. and wages should decrease.
Answer: A
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Suppose a share of stock is expected to pay an annual dividend of $10 forever. At a discount rate of 5 percent, the share's market price should be
A) $188.24. B) $200.00. C) $29.60. D) $10.80.
Suppose the domestic and foreign interest rates are both initially equal to 3%. Now suppose the domestic interest rate rises to 5%. Explain what effect this will have on the exchange rate. Also explain what must occur for the interest parity condition to be restored
What will be an ideal response?
In the above figure, the monopolist's profit-maximizing price is
A. A. B. B. C. C. D. D.
When the government requires a firm to pay an emission charge in proportion to its pollution,
A. Neither marginal costs nor average total costs are affected. B. Marginal costs rise, but average total costs do not. C. Both average total costs and marginal costs rise. D. Average total costs rise, but marginal costs do not.