EBK ECONOMICS: PRINCIPLES AND POLICY
13th Edition
ISBN: 9781305465626
Author: Blinder
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Question
Chapter 19, Problem 1DQ
To determine
Trend of student labor in labor market.
Expert Solution & Answer
Explanation of Solution
There are large numbers of unskilled labors in college and in college towns. The marginal productivity of such labor is fairly low, thus their wage rate is also low. College is a major employer of student labor, hence it act as a monopolist and reduce the wage rate of labors below the marginal product value. If the students formed a labor union, they can maintain the minimum wage rate.
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Chapter 19 Solutions
EBK ECONOMICS: PRINCIPLES AND POLICY
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