arti : Suppose the firm's labor demand curve is given by: w = 60 – 0.03E vhere w is the hourly wage and E is the level of employment. Suppose also that the union's utility unction is given by: U = w xE The marginal utility of the wage for the union is E and the marginal utility of employment is w. (a) How many workers will be employed under a monopoly union contract? (b) What wage would a monopoly union demand?
arti : Suppose the firm's labor demand curve is given by: w = 60 – 0.03E vhere w is the hourly wage and E is the level of employment. Suppose also that the union's utility unction is given by: U = w xE The marginal utility of the wage for the union is E and the marginal utility of employment is w. (a) How many workers will be employed under a monopoly union contract? (b) What wage would a monopoly union demand?
Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
ChapterST9: Do Labor Unions Increase The Wages Of Workers?
Section: Chapter Questions
Problem 2CQ
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