Impact on price when the workers are unionized.

Question

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Answer 1

Question

Chapter ST9, Problem 1CQ

(a)

To determine

Impact on price when the workers are unionized.

(a)

Expert Solution

Explanation of Solution

When the workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lower the production. As a result, supply of good will reduce, which cause increase in the price of good. Thus, unionization will increase the price in the long run.

(b)

To determine

Profit of the fruit growers both in the short run and long run.

(b)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lowers the production. When the cost of production increases, the profit will decline in the short run. Lower production leads to lower supply of good, which causes increase in the price of the good. Thus, the profit will increase and reach at the normal rate in the long run.

(c)

To determine

The mechanization of fruit picking industry.

(c)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This leads to increase in the cost of production. Hence, the fruit picking industry will replace labor with capital goods such as machinery, tools, and equipment. Thus, increase in the wage rate will enhance mechanization in the industry.

(d)

To determine

Employment of migrant farm workers.

(d)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. Hence, the employers hire only fewer labors at the higher wage rate, which results in lower employment rate. This in turn creates excess supply of labor in the economy.

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Answer 2

Question

Chapter ST9, Problem 1CQ

(a)

To determine

Impact on price when the workers are unionized.

(a)

Expert Solution

Explanation of Solution

When the workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lower the production. As a result, supply of good will reduce, which cause increase in the price of good. Thus, unionization will increase the price in the long run.

(b)

To determine

Profit of the fruit growers both in the short run and long run.

(b)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lowers the production. When the cost of production increases, the profit will decline in the short run. Lower production leads to lower supply of good, which causes increase in the price of the good. Thus, the profit will increase and reach at the normal rate in the long run.

(c)

To determine

The mechanization of fruit picking industry.

(c)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This leads to increase in the cost of production. Hence, the fruit picking industry will replace labor with capital goods such as machinery, tools, and equipment. Thus, increase in the wage rate will enhance mechanization in the industry.

(d)

To determine

Employment of migrant farm workers.

(d)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. Hence, the employers hire only fewer labors at the higher wage rate, which results in lower employment rate. This in turn creates excess supply of labor in the economy.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter ST9, Problem 1CQ

(a)

To determine

Impact on price when the workers are unionized.

(a)

Expert Solution

Explanation of Solution

When the workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lower the production. As a result, supply of good will reduce, which cause increase in the price of good. Thus, unionization will increase the price in the long run.

(b)

To determine

Profit of the fruit growers both in the short run and long run.

(b)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lowers the production. When the cost of production increases, the profit will decline in the short run. Lower production leads to lower supply of good, which causes increase in the price of the good. Thus, the profit will increase and reach at the normal rate in the long run.

(c)

To determine

The mechanization of fruit picking industry.

(c)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This leads to increase in the cost of production. Hence, the fruit picking industry will replace labor with capital goods such as machinery, tools, and equipment. Thus, increase in the wage rate will enhance mechanization in the industry.

(d)

To determine

Employment of migrant farm workers.

(d)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. Hence, the employers hire only fewer labors at the higher wage rate, which results in lower employment rate. This in turn creates excess supply of labor in the economy.

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Answer 4

Question

Chapter ST9, Problem 1CQ

(a)

To determine

Impact on price when the workers are unionized.

(a)

Expert Solution

Explanation of Solution

When the workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lower the production. As a result, supply of good will reduce, which cause increase in the price of good. Thus, unionization will increase the price in the long run.

(b)

To determine

Profit of the fruit growers both in the short run and long run.

(b)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lowers the production. When the cost of production increases, the profit will decline in the short run. Lower production leads to lower supply of good, which causes increase in the price of the good. Thus, the profit will increase and reach at the normal rate in the long run.

(c)

To determine

The mechanization of fruit picking industry.

(c)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This leads to increase in the cost of production. Hence, the fruit picking industry will replace labor with capital goods such as machinery, tools, and equipment. Thus, increase in the wage rate will enhance mechanization in the industry.

(d)

To determine

Employment of migrant farm workers.

(d)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. Hence, the employers hire only fewer labors at the higher wage rate, which results in lower employment rate. This in turn creates excess supply of labor in the economy.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter ST9, Problem 1CQ

(a)

To determine

Impact on price when the workers are unionized.

(a)

Expert Solution

Explanation of Solution

When the workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lower the production. As a result, supply of good will reduce, which cause increase in the price of good. Thus, unionization will increase the price in the long run.

(b)

To determine

Profit of the fruit growers both in the short run and long run.

(b)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lowers the production. When the cost of production increases, the profit will decline in the short run. Lower production leads to lower supply of good, which causes increase in the price of the good. Thus, the profit will increase and reach at the normal rate in the long run.

(c)

To determine

The mechanization of fruit picking industry.

(c)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This leads to increase in the cost of production. Hence, the fruit picking industry will replace labor with capital goods such as machinery, tools, and equipment. Thus, increase in the wage rate will enhance mechanization in the industry.

(d)

To determine

Employment of migrant farm workers.

(d)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. Hence, the employers hire only fewer labors at the higher wage rate, which results in lower employment rate. This in turn creates excess supply of labor in the economy.

Answer 6

Chapter ST9, Problem 1CQ

(a)

To determine

Impact on price when the workers are unionized.

(a)

Expert Solution

Explanation of Solution

When the workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lower the production. As a result, supply of good will reduce, which cause increase in the price of good. Thus, unionization will increase the price in the long run.

Answer 7

Chapter ST9, Problem 1CQ

(a)

To determine

Impact on price when the workers are unionized.

Answer 8

(a)

Expert Solution

Explanation of Solution

When the workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lower the production. As a result, supply of good will reduce, which cause increase in the price of good. Thus, unionization will increase the price in the long run.

Answer 9

(a)

Expert Solution

Answer 10

(a)

Expert Solution

Answer 11

Expert Solution

Answer 12

(b)

To determine

Profit of the fruit growers both in the short run and long run.

(b)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lowers the production. When the cost of production increases, the profit will decline in the short run. Lower production leads to lower supply of good, which causes increase in the price of the good. Thus, the profit will increase and reach at the normal rate in the long run.

Answer 13

(b)

To determine

Profit of the fruit growers both in the short run and long run.

Answer 14

(b)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This will lead to increase in the cost of production, which in turn lowers the production. When the cost of production increases, the profit will decline in the short run. Lower production leads to lower supply of good, which causes increase in the price of the good. Thus, the profit will increase and reach at the normal rate in the long run.

Answer 15

(b)

Expert Solution

Answer 16

(b)

Expert Solution

Answer 17

Expert Solution

Answer 18

(c)

To determine

The mechanization of fruit picking industry.

(c)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This leads to increase in the cost of production. Hence, the fruit picking industry will replace labor with capital goods such as machinery, tools, and equipment. Thus, increase in the wage rate will enhance mechanization in the industry.

Answer 19

(c)

To determine

The mechanization of fruit picking industry.

Answer 20

(c)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. This leads to increase in the cost of production. Hence, the fruit picking industry will replace labor with capital goods such as machinery, tools, and equipment. Thus, increase in the wage rate will enhance mechanization in the industry.

Answer 21

(c)

Expert Solution

Answer 22

(c)

Expert Solution

Answer 23

Expert Solution

Answer 24

(d)

To determine

Employment of migrant farm workers.

(d)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. Hence, the employers hire only fewer labors at the higher wage rate, which results in lower employment rate. This in turn creates excess supply of labor in the economy.

Answer 25

(d)

To determine

Employment of migrant farm workers.

Answer 26

(d)

Expert Solution

Explanation of Solution

If Country F’s migrant workers are unionized, the wage rate will increase. Hence, the employers hire only fewer labors at the higher wage rate, which results in lower employment rate. This in turn creates excess supply of labor in the economy.