Unions will be more effective at raising wages when it is difficult for nonunion competitors to enter the industry.
Answer the following statement true (T) or false (F)
True
In industries where competitors find entry difficult, unions do not have to worry as much about a nonunion competitor with lower labor costs undercutting their prices.
You might also like to view...
The concept of diminishing marginal rate of substitution indicates that
A) as the consumption of good X increases, individuals are willing to give up an increasing amount of good Y in order to obtain one more unit of good X. B) as the consumption of good X increases, individuals are willing to give up a decreasing amount of good Y in order to obtain one more unit of good X. C) along an indifference curve, a consumer prefers the consumption combinations moving to the northwest along the curve. D) None of the above answers is correct.
The graph below represents the market for lychee nuts. The equilibrium price is $7.00 per bushel, but the market price is $5.00 per bushel. Identify the areas representing consumer surplus, producer surplus, and deadweight loss at the equilibrium price
of $7.00 and at the market price of $5.00. What will be an ideal response?