Econ Micro (book Only)
6th Edition
ISBN: 9781337408066
Author: William A. McEachern
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 12, Problem 5P
To determine
describe the difference between craft and industrial unions attempt to raise the wage rates of their members. Enlighten on their different approaches and impact of the differences on the excess quantity of labor supplied
Concept Introduction:
Craft unions: represents a group of workers or trade union of workers who engage in the same skill
Industrial unions: this is where all workers in the same industry are organized into the same union, regardless of differences in their talents.
Excess quantity of labor supplied: this is a situation where the quantity of a good or service supplied is more than its quantity demanded for the good or service.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
(Case Study: Unionizing Information Technology Workers) Why haven’t unions been more successful in organizing IT workers? Graduate and research assistants at New York University in 2000 were granted the right to join unions, but a federal body reversed that decision in 2004. Do you think the unions would have been more successful in organizing this group than IT workers? Why or why not?
(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
Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market.
Instructions: Enter your answers as a whole number.
Units of
Labor
0
1
2
3
4
5
6
Total
Product
0
17
31
43
53
60
65
Marginal
Product
Product
Price
$2
2
2
2
2
2
Total
Revenue
Marginal
Revenue
Product
a. How many workers will the firm hire if the market wage rate is $27.95?
worker(s)
How many workers will the firm hire if the market wage rate is $19.95?
worker(s)
Knowledge Booster
Similar questions
- Units of Labor 0 1 2 3 4 5 Quantity of Output 0 10 25 32 38 43 Product Price $17 $16 $15 $14 $13 $12 Marginal Revenue Product (A) (B) (C) (D) (E) 2 Use the table above. Assume all figures in the table pertaining to labor productivity are per-hour. 1. If the wage is $25 per hour, this firm should hire [Select] 2. If the wage is $50 per hour, this firm should hire [Select]arrow_forwardGraph Input Tool Market for Labor 16 I Wage (Dollars per hour) 2.00 14 Supply Labor Demanded (Thousands of workers) Labor Supplied (Thousands of workers) 12 1,400 200 10 Demand 2 200 400 600 800 1000 1200 1400 1600 LABOR (Thousands of workers) Enter $10.00 into the box labeled Wage on the previous graph. Hint: Be sure to pay attention to the units used on the graph. At the union wage, union workers will be employed. The following graph shows the labor market in a state in the South. The legislature in this state passes strong "right-to-work" laws that make it very difficult for unions to organize workers, so the wage is always equal to the market-clearing value. Except for this difference in legislation, the two states are very similar. The initial position of the graph corresponds to the initial labor market condition in the southern state before the labor union negotiated the new, higher wage for workers in the northern state. Suppose that after the wage goes up in the northern…arrow_forward12-4 Give reasons why unionization rates have declined in recent decades 8. (Unionization Rates) What trends have worked against the union movement during the last half century? What has happened to the effectiveness of strikes and whyarrow_forward
- Completed 0 out of 30 Resources Submit Question 24 of 30 What is the elasticity of demand for labor? A measure of how upset your boss is when his employees ask for more money. O A measure of how responsive firms' supply of labor is to changes in the wage rate. A measure of the extra revenue earned by the firm resulting from hiring one more unit of labor. A measure of how much firms' profits are affected by changes to wages. A measure of how sensitive the amount of labor firms will hire is to changes in the wage rate. A measure of the sensitivity of wage rates to the unemployment rate. Suppose you discover that your boss has a demand for labor that is very elastic. What does this imply in terms of y requesting a raise? Your boss may likely eliminate some positions (fire some people) if wages rise. Your boss will maintain the exact same labor force (not fire or hire anyone) if wages rise. Your boss is a flexible and undertanding person, so he or she is likely to accomodate any request…arrow_forwardA company operates in a competitive market, selling each unit of output for a price of $20 and paying the market wage of $270 per day for each worker it hires. In the following table, complete the column for the value of the marginal product of labor (VMPL) at each quantity of workers. Marginal Product of Value of the Marginal Product Labor Labor Output (Units of output) of Labor (Number of workers) (Units of output) (Dollars) 20 1 20 19 2 39 18 3 57 15 72 12 5 84 On the following graph, use the blue points (circle symbol) to plot the firm's labor demand curve. Then, use the orange line (square symbols) to show the wage rate. (Note: If you cannot place the wage rate at the level you want, move the two end points individually.) Hint: Remember to plot each point halfway between the two integers. For example, when the number of workers increases from 0 to 1, the value of the marginal product for the first worker should be plotted with a horizontal coordinate of 0.5, the value halfway…arrow_forwardLabor and Wages The following chart provides information on a firm that hires labor competitively and sells its product in a competitive market. Units of Labor Total Product Output Price 14 $5 26 $5 3 37 $5 4 46 $5 53 $5 58 $5 a. How many units of labor would be employed if the market wage rate were $40? Why? b. What would happen to employment if the wage rate rose to $50? Explain your answer.arrow_forward
- Complete the following labor demand table for a firm that is hiring labor competitively and selling its product in a competitive market. Instructions: Enter your answers as a whole number. Units of Labor Marginal Revenue Total Product Marginal Product Total Product Price Revenue Product $2 1 17 2 2 31 2 3 43 2 4 53 2 5 60 2 6 65 2 a. How many workers will the firm hire if the market wage rate is $27.95? worker(s) How many workers will the firm hire if the market wage rate is $19.95? worker(s) b. Show this firm's labor demand curve graphically. Instructions: Use the tool provided 'Demand' to plot the labor demand curve point by point (plot 6 points total). 35 Tools 30 Demand 25 20 15 (1, 16) 10 1 3 4 Quantity of labor demanded Wage ratearrow_forwardQuestions: Explain and discuss the relationship between the elasticity of demand for the product and the elasticity of demand for the labor that produces the product. Based on your explanation question 1 above, discuss how that relationship between the elasticity of demand for products and labor would affect your job searching strategy in the future. Explain how the relationship between elasticity of demand for the product and labor would affect your major or specialization while you are studying at a higher education institution.arrow_forward13. Identify which way the labor supply curve would shift under the following scenarios. A country experiences a huge influx of immigrants who are skilled in the textile industry. Wages increase in an industry that requires similar job skills. New machines require additional maintenance over time, so that the marginal productivity of labor rises.arrow_forward
- Ford Motors 2010-2019 Explain how the company uses high-skilled and low-skilled labor? Most companies will use some mix of both, but most companies will rely more heavily on one or the other.arrow_forward12. *The following chart provides information on a firm that hires labor competitively and sells its product in a competitive market. UNITS OF TOTAL MARGINAL PRODUCT TOTAL LABOR OUTPUT PRODUCT PRICE REVENUE MRP 1 14 $5 2345 2 26 - $5 37 $5 46 $5 53 $5 6 58 $5 a. Fill in the missing columns. b. How many units of labor would be employed if the market wage rate were $40? Why? c. What would happen to employment if the wage rate rose to $50? Explain.arrow_forward1. Espresso Yourself Coffee Shop hires workers in a competitive labor market to make coffee. The ingredients required to make each cup of coffee cost 50 cents. The coffee shop's hourly output of coffee varies with the number of workers hired, as shown in the table. Each cup of coffee sells for $2.00. Number of workers Coffee (cups/hour) 0 0 1 25 2 45 3 60 4 70 5 75 The marginal product of the third worker is ________ than the marginal product of the second worker, implying that ________. greater; diminishing returns are absent less; diminishing returns are present neither greater nor less; the third worker will be hired less; the third worker will never be hired Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Principles of Economics 2eEconomicsISBN:9781947172364Author:Steven A. Greenlaw; David ShapiroPublisher:OpenStax
Economics (MindTap Course List)EconomicsISBN:9781337617383Author:Roger A. ArnoldPublisher:Cengage Learning
Principles of Economics 2e
Economics
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:OpenStax
Economics (MindTap Course List)
Economics
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Cengage Learning