Microeconomics
11th Edition
ISBN: 9781260507140
Author: David C. Colander
Publisher: McGraw Hill Education
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Chapter 17, Problem 15QE
To determine
Identify the market structure.
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Consider the labor market for electricians. The demand curve is downward sloping and the supply curve is upward sloping. In this market, however, there is a strong labor union. Assume that the electrician’s union is able to negotiate a new contract that substantially raises their member's wages.
Select the correct statement.
If there is inelastic demand for your labor, how does that influence individual (or union) "bargaining power"?
Question 26 of 30
Consider the labor market for electricians. The demand curve is downward sloping and the supply curve is upward sloping. In
this market, however, there is a strong labor union. Assume that the electrician's union is able to negotiate a new contract that
substantially raises their member's wages.
Select the correct statement.
Fewer people want to work as electricians as the union increases wage.
Firms hire the same number of electricians at both wages.
The wage increase is unambiguously beneficial for all the electricians working before the wage increase.
O A consequer
of the union negotiating a higher wage is fewer jobs for electricians.
8:25 PM
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12/15/2021
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Chapter 17 Solutions
Microeconomics
Ch. 17.1 - Prob. 1QCh. 17.1 - Prob. 2QCh. 17.1 - Prob. 3QCh. 17.1 - Prob. 4QCh. 17.1 - Prob. 5QCh. 17.1 - Prob. 6QCh. 17.1 - Prob. 7QCh. 17.1 - Prob. 8QCh. 17.1 - Prob. 9QCh. 17.1 - Prob. 10Q
Ch. 17.A - Prob. 1QECh. 17.A - Prob. 2QECh. 17.A - Prob. 3QECh. 17.A - Prob. 4QECh. 17.A - Prob. 5QECh. 17.A - Prob. 6QECh. 17.A - Prob. 7QECh. 17.A - Prob. 8QECh. 17.W - Prob. 1QECh. 17.W - Prob. 2QECh. 17.W - Prob. 3QECh. 17.W - Prob. 4QECh. 17.W - Prob. 5QECh. 17.W - Prob. 6QECh. 17.W - Prob. 7QECh. 17.W - Prob. 8QECh. 17.W - Prob. 9QECh. 17.W - Prob. 10QECh. 17.W - Prob. 1QAPCh. 17.W - Prob. 2QAPCh. 17.W - Prob. 3QAPCh. 17.W - Prob. 4QAPCh. 17.W - Prob. 5QAPCh. 17.W - Prob. 1IPCh. 17.W - Prob. 2IPCh. 17.W - Prob. 3IPCh. 17.W - Prob. 4IPCh. 17.W1 - Prob. 1QCh. 17.W1 - Prob. 2QCh. 17.W1 - Prob. 3QCh. 17.W1 - Prob. 4QCh. 17.W1 - Prob. 5QCh. 17.W1 - Prob. 6QCh. 17.W1 - Prob. 7QCh. 17.W1 - Prob. 8QCh. 17.W1 - Prob. 9QCh. 17.W1 - Prob. 10QCh. 17 - Prob. 1QECh. 17 - Prob. 2QECh. 17 - Prob. 3QECh. 17 - Prob. 4QECh. 17 - Prob. 5QECh. 17 - Prob. 6QECh. 17 - Prob. 7QECh. 17 - Prob. 8QECh. 17 - Prob. 9QECh. 17 - Prob. 10QECh. 17 - Prob. 11QECh. 17 - Prob. 12QECh. 17 - Prob. 13QECh. 17 - Prob. 14QECh. 17 - Prob. 15QECh. 17 - Prob. 16QECh. 17 - Prob. 17QECh. 17 - Prob. 18QECh. 17 - Prob. 19QECh. 17 - Prob. 20QECh. 17 - Prob. 21QECh. 17 - Prob. 22QECh. 17 - Prob. 23QECh. 17 - Prob. 24QECh. 17 - Prob. 25QECh. 17 - Prob. 26QECh. 17 - Prob. 1QAPCh. 17 - Prob. 2QAPCh. 17 - Prob. 3QAPCh. 17 - Prob. 4QAPCh. 17 - Prob. 5QAPCh. 17 - Prob. 6QAPCh. 17 - Prob. 1IPCh. 17 - Prob. 2IPCh. 17 - Prob. 3IPCh. 17 - Prob. 4IPCh. 17 - Prob. 5IPCh. 17 - Prob. 6IPCh. 17 - Prob. 7IPCh. 17 - Prob. 8IPCh. 17 - Prob. 9IPCh. 17 - Prob. 10IPCh. 17 - Prob. 11IP
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- The table below shows the quantity demanded and supplied in the labor market for nurses in the town of Neverland, where all nurses belong to a union. Quantity Quantity Wages per Hour Demanded of Workers Supplied of Workers $20 12,000 6,000 $25 10,000 7,000 $30 8,000 8,000 $35 6,000 9,000 $40 4,000 10,000 $45 2,000 11,000 Based on the table above, answer the following: a) What would the equilibrium wage and equilibrium quantity of workers be in this market if no union existed? JUSTIFY your answer! b) Assume that the union has enough negotiating power to raise the wage to $10 per hour higher than it would otherwise be. Is there now excess demand or excess supply of workers? JUSTIFY your answer!arrow_forwardWhat determines the demand for labor for a firm with market power in the output market?arrow_forwardsmall hospital in rural Alaska is a monopsony employer of nurses. The nurses unionize. They have little power at the bargaining table, but they do bargain for a slightly higher wage. What happens to the number of nurses employed? What happens to labor costs and marginal labor costs?arrow_forward
- true or false Labor unions are organized primarily to help women who are expecting to go into labor while on the job.arrow_forwardAssume a monopsony uses only one factor, labor, L, to produce a final good, Q, which it sells in a competitive market at the price, p = 1. The inverse supply curve for labor is w = 20 + 2L. If the monopsony's labor demand curve is w = 70 - L, how many units of labor does it hire and at what wage? What value does the monopsony place on the last worker hired? How does the monopsony equilibrium %3D compare to the competitive equilibrium?arrow_forwardWhat would happen to the demand curve for the labor of a clinic if the clinic purchases equipment that increases worker productivity? How does the introduction of health insurance benefits impact the supply curve for labor?arrow_forward
- The table below shows the quantity demanded and supplied in the labor market for full-time Nursing Instructors at the University of Hawaii. Quantity of Quantity of Professor Professor Annual Salary Demanded Supplied $ 50,000.00 300 60 $ 65,000.00 250 80 $ 75,000.00 200 100 $ 90,000.00 150 150 $ 105,000.00 100 200 $ 120,000.00 50 250 a. If no union existed, how many professors would be hired and what would the equilibrium salary for Nursing Instructors be? b. Assume the union has enough negotiating power to raise the annual salary by $15,000 more than a non-unionized equilibrium salary. Explain what will happen in the labor market for Nursing Instructors. What is the new salary and how many instructors will be hired and how many will be unable to find a position? c. The University of Hawaii system has a history of paying Nursing Instructors more than Instructors in other programs. Why do you think this is? Maximum number of characters (including HTML tags added by text editor): 32,000…arrow_forwardThe 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_forwardListed are scenarios that may lead to changes in labor market conditions for chefs. Use your knowledge of labor demand and supply curves to match each scenario to the appropriate category. Will cause a shift in the demand for labor Will cause a shift in the supply of labor Will cause a shift in both the demand for labor and supply of labor Will not result in a curve shifting A professional cooking tool is invented that reduces the number of chefs required to produce many dishes. The amount of training required to work as a chef increases. Wages for chefs increase. Answer Bankarrow_forward
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