Union leaders who focus on increasing the size of their union will be aggressive in demanding higher wages.

The above figure shows a labor market with minimum wage equal to $16. In this figure, what area equals the resources lost because of job search?

A) area A B) area B C) area C D) area D E) area E

Which of the following will happen if a new firm enters in an oligopoly with differentiated products?

A) Market price will fall. B) Market price will rise. C) Existing firms will gain market share. D) Each firm will have an equal market share.