Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
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Question
Chapter 12, Problem 9P
To determine
The effect of the minimum wage in an industry on the unskilled labor market and level of employment in a firm.
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(Figure: Labor Union Wages I) The figure represents a labor union with wage in dollars and quantity of labor in hundreds
of hours.
Wage 200
($) 180
160
140
120
100
80
60
40-
20
0
MR
MC
LD
10 20 30 40 50 60 70 80
Quantity of labor
If the labor union chooses to maximize profit, how many workers will it supply?
0 2,750
4,000
8,000
5,000
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