Exam 29: Unions and Labor Market Monopoly Power

-Consider the above figure, which displays the situation faced by a union employed by a firm with the labor demand curve D. This union has total membership of Q3 workers, but its single wage setting goal is to maximize wages for the Q1 members with the most seniority. If the union managers accomplish this goal, what occurs?

The U.S. labor movement started

When there is only one buyer in a market, there is a

Suppose a union successfully negotiates a wage rate for its members that is above the competitive wage rate, then

The main difference between a monopsonist and a competitive buyer of labor is that

If a union establishes by collective bargaining a wage rate that is above a competitive market equilibrium wage rate, then

-Use the above table. The data shows that the firm

Legislation that makes it illegal to require union membership as a condition of continuing employment is the

A union is striking a steel company, and then, to put more pressure on the steel company, also promotes a boycott against an auto company that buys steel from the steel company. This latter action is

Unions tend to want import restrictions because

-In the above table, if the marginal revenue product is $26, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?

The labor market in professional baseball is an example of

Can unions increase productivity? Explain.

-In the above table, what is the marginal factor cost of the 2nd worker?

-According to the above table, if the marginal revenue product is $24, how many workers will the profit maximizing monopsonist hire?

A labor union that consists of workers from a particular industry is a(n)

Laws that outlaw union shops and which may be passed (or not) by individual states are called

-In the above figure, the monopsonist will employ

The practice of forcing employers to use more labor than they would otherwise use is called

A boycott of products sold by companies that are dealing with a company whose workers are on strike is a