Suppose a labor market has perfectly inelastic supply that is composed of union and non-union workers, and there is wage discrimination in the union and nonunion sectors
If the union shifts its policy from maximizing total economic rents to maximizing total wages earned by members, what happens to the equilibrium employment level and wage for non-union workers? A) Both increase.
B) Employment increases and wage declines.
C) Wage increases and employment declines.
D) Both decline.
C
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If a natural monopoly is regulated using the marginal cost pricing rule, how does the regulation affect prices, outputs, profits, and the distribution of surpluses? What are the pros and cons to this method of regulation?
What will be an ideal response?
The founding document of the European Economic Community, and the document that continues to provide the basis for the European Union is the
A) Treaty of Brussels. B) Delors Report. C) Treaty of Rome. D) Single European Treaty. E) Maastricht Treaty.