CH17

Independent unions

have greater combined membership than the AFL-CIO.

The product price is $10 per unit and the cost per worker is $540. How many workers will the firm employ?

4

The table shows labor demand data on the left and labor supply data on the right. The firm will maximize profits (or minimize losses) by employing

4 workers.

The table shows labor demand data on the left and labor supply data on the right. What will be the profit-maximizing wage rate?

5

In 2015, there were about _____ million union members in the United States.

8.4

A bilateral monopoly is a situation where a firm is

a monopoly in its product market and is a monopsony in its labor market.

The individual firm that hires labor under competitive conditions faces a labor supply curve that

Slopes downward to the right

A firm pays the market equilibrium wage of $15.00 an hour, and the workers produce 25 units of output an hour. If the firm adopts an efficiency-wage policy, then the wage rate for these workers would be expected to

decrease and productivity to increase.

In monopsony,

each firm employs a small portion of the total supply of labor.

The principal-agent problem, as applied to the labor market, would have the

employer and worker as the principals, and the customer as the agent.

Refer to the given data. If this firm can hire as few or many workers as it wants at $8, it is

hiring labor in a monopsony labor market

Unnecessary occupational licensing requirements in an industry tend to

increase the supply of the product.

Refer to the diagrams. At the profit-maximizing level of employment for this firm, the amount available to pay to nonlabor resources

is 0Wbc.

A firm faces the labor productivity and cost schedule in the table. The wage rate schedule suggests that the firm

is purely competitive in the labor market.

State right-to-work laws

prohibit employers from discriminating against minority groups in hiring workers.

The minimum wage in the U.S. is

set at the federal level, and all states abide by that level.

The principal-agent problem, as applied to the management of a company, would have the

stockholders as the agents and the managers as the principals.

Refer to the given supply information facing a single firm in a particular labor market. This labor supply curve demonstrates that

the firm is selling its output under imperfectly competitive conditions.

The idea of efficiency wages is that

the wages of each type of labor must be proportionate to their marginal products.

In the United States,

workers in mining have higher unionization rates than workers in government.