FIGURE 14- 6

question 63

Multiple Choice

FIGURE 14- 6
-Refer to Figure 14- 6.Suppose a labour union is operating in this labour market.The practice of "feather- bedding" would be illustrated by

• A)employers hiring L1 units of labour because a union organizes workers.
• B)the supply of labour shifting to S2.
• C)employers hiring L2 units of labour when a union has been able to increase the wage to W2.
• D)the union wage premium equal to the difference between W1 and W2.
• E)advertising causing the demand for labour to shift to D2.

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Definitions:

Input Units

The basic quantities or resources used in the production of goods and services.

Competitor

A firm or entity that competes within the same market, offering similar goods or services to the same customer base.

Producer Surplus

The difference between what producers are willing to sell a good for and the price they actually receive, representing profit.

Marginal Revenue

Marginal revenue is the additional income generated from the sale of one more unit of a product or service.