A union can be viewed as a monopoly seller of a service. What are the three wage and employment strategies the union might use?
What will be an ideal response?
The union might try to employ all members, but the only way it can do this is to accept the market clearing wage. The market would do this without the union, so the union will probably not pursue this strategy. It can maximize members' income. This is found by finding the marginal revenue curve that goes with the demand curve for labor and finding the wage when marginal revenue would be zero. Finally, it can maximize wages for certain workers, which would mean more of the members go without jobs.
You might also like to view...
Firms that sell highly differentiated consumer goods, such as over-the-counter drugs, soft drinks, breakfast cereals, and dog food, typically spend between 10 and 20 percent of revenue for
When a country imposes capital controls, it is controlling the
A) amount of money flowing in or out of the country. B) amount of reserves that banks must hold. C) portion of bank deposits that must be held at its central bank. D) portion of bank deposits that must be used for loans to the government.
A recession in another country the U.S. actively trades with would
A. increase U.S. net exports and increase aggregate demand. B. increase U.S. net exports and increase aggregate supply. C. reduce U.S. net exports and reduce aggregate demand. D. reduce U.S. net exports and increase aggregate
A country undertakes a devaluation in order to
A) decrease its net exports. B) raise the value at which its currency is pegged. C) move to a flexible exchange rate system. D) increase its net exports.