Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Textbook Question
Chapter 14, Problem 37CTQ
Given the decline in union membership over the past 50 years, what does the theory of bilateral monopoly suggest will have happened to the equilibrium level of wages over time? Why?
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Describe the wage-employment outcome in a model of monopoly unionism. Explain why (and in what sense) this wage-employment outcome is inefficient.
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Chapter 14 Solutions
Principles of Economics 2e
Ch. 14 - Table 14.10 shows levels of employment (Labor),...Ch. 14 - Table 14.11 shows levels of employment (Labor),...Ch. 14 - Table 14.12 shows the quantity demanded and...Ch. 14 - Do unions typically oppose new technology out of a...Ch. 14 - Compared with the share of workers in most other...Ch. 14 - Are firms with a high percentage of union...Ch. 14 - D0 countries with a higher percentage of unionized...Ch. 14 - Table 14.13 shows information from the supply...Ch. 14 - Explain i11each of the following situations how...Ch. 14 - Does the earnings gap between the average wages of...
Ch. 14 - If immigration is reduced, what is the impact on...Ch. 14 - What determines the demand for labor for a firm...Ch. 14 - What determines the demand for labor for a firm...Ch. 14 - What is a perfectly competitive labor market?Ch. 14 - What is a labor union?Ch. 14 - Why do employers have a natural advantage in...Ch. 14 - What are some of the most important laws that...Ch. 14 - How does the presence of a labor union change...Ch. 14 - What is the long-term trend in American union...Ch. 14 - Would you expect the presence of labor unions to...Ch. 14 - What are the main causes for the recent [tends in...Ch. 14 - What is a monopsony?Ch. 14 - What is the marginal cost of labor?Ch. 14 - How does monopsony affect the equilibrium wage and...Ch. 14 - What is a bilateral monopoly?Ch. 14 - How does a bilateral monopoly affect the...Ch. 14 - Describe how the earnings gap between men and...Ch. 14 - Describe how the earnings gap between blacks and...Ch. 14 - Does a gap between the average earnings of men and...Ch. 14 - Will a free market tend to encourage or discourage...Ch. 14 - What policies, when used together with...Ch. 14 - Describe how affirmative action is applied in the...Ch. 14 - What factors can explain the relatively small...Ch. 14 - Have levels of immigration to the United States...Ch. 14 - How would you expect immigration by primarily...Ch. 14 - What is the marginal cost of labor for a firm that...Ch. 14 - Given the decline in union membership over the...Ch. 14 - Are unions and technological improvements...Ch. 14 - Will union membership continue to decline? Why or...Ch. 14 - If it is not profitable to discriminate, why does...Ch. 14 - If a company has discriminated against minorities...Ch. 14 - If the United States allows a greater quantity of...Ch. 14 - If all countries eliminated all barriers to...
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Similar questions
- Describe how we calculate the percentage decline in national income resulting from the misallocation of labor in a model of monopoly unionism. What is the dollar value of this allocative inefficiency if unions and firms reach efficient contracts and the contract curve is vertical?arrow_forwardHow can both the union and the firm be better off by bargaining over the wage rate and employment rather than just the wage rate?arrow_forwardWould you expect the presence of labor unions to lead to higher or lower pay for worker-members? Would you expect a higher or lower quantity of workers hired by those employers? Explain briefly.arrow_forward
- Explain why we have seen a decrease in labor unions.arrow_forwardWhat percentage of wage and salary workers are union members? Is this percentage higher, or is it lower, than in previous decades? Which of the factors explaining the trend do you think is most dominant?arrow_forwardSuppose the firm’s labor demand curve is given by w = 20 - 0.01E where w is the hourly wage and E is the level of employment. Suppose also that the union’s utility function is given by U = w * E It is easy to show that the marginal utility of the wage for the union is E and the marginal utility of employment is w. What wage would a monopoly union demand? How many workers will be employed under the union contract?arrow_forward
- The marginal cost of labor (MCL) is equal to what for a firm that operates in a competitive labor market? How does this compare with the MCL for a monopsony.arrow_forwardCombine the results on monopoly in the product market with those of monopsony in the labour market, and illustrate the wage and employment determination process. is it necessary that monopoly be accompanied by monopsony? is it possible that the two conditions could go together?arrow_forwardAnswer the following questions based on the diagram below, in which Ij and I2 are the indifferent curves of labour union, Tị and n2 are the isoprofit curves, and DL is the labour demand curve. Wc is the wage rate in a perfectly competitive market. I2 Wc DL Qc Quantity of labour Wage ratearrow_forward
- consider a economy where there is initially no labour unions. When labour unions are introducted, they successfully bargain collective agreements in about half of firms in the economy. using supply and demand curves can you show me how the effects of these unions on wage and employment. Would be helpful if you can provide a graph as well.arrow_forwardWhat would happen if the labour market is dominated by a monopsonist, and the government sets a minimum wage that is above the competitive wage? please answer with graphsarrow_forwardA monopsonist's demand curve tor labor Is given by w = 12 - L. If she originally faced an AFC curve given by w = 2 + 2L, with corresponding MFC = 2+ 4L, how will her wage and employment offers be affected by the passage of a law requiring W ≥ 8? A law requiring ≥ 10? Please show your work.arrow_forward
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