(Figure: Labor Union Wages I) The figure represents a labor union with wage in dollars and quantity of labor in hundreds of hours. Wage 200 ($) 180 160 140 120 100 80 60 40- 20 0 MR MC LD 10 20 30 40 50 60 70 80 Quantity of labor If the labor union chooses to maximize profit, how many workers will it supply? 0 2,750 4,000 8,000 5,000

6. Under certain circumstances, it is possible for unions to better their interests by affecting or altering the union constraint in a direct or indirect manner. Could you recommend a strategy that may work for this goal, based on your microeconomics knowledge? How can unions put your strategy to work? Demonstrate the effect of your strategy in a diagram.

Quantity of Labor Supplied Wage Total Cost of Labor Marginal Cost of Labor Marginal Revenue Product 50 $10 $500 $10 $30 100 $12 $1200 X $25 150 $15 $2250 $21 $21 200 $18 $3600 $27 $18 250 $20 $5000 $28 $15   Use the labor market data for a monopsony employer above. Solve for the missing value X. Question 9 options:   $12   $14   $25   $700

a)10 b)18 c)8 d)17