Suppose There Is a Competitive Market for Retail Workers at a Large

question 65

Multiple Choice

Suppose there is a competitive market for retail workers at a large shopping mall that is large enough to constitute its own labour market. The labour demand curve is QD = 1000 - 20w) . The labour supply curve is QS = 400 + 40w) . Suppose that a union now successfully organizes the workers at this mall and obtains a wage rate of $11 but does not affect the demand curve) . One result is

• A) an increase in employment of 20 workers.
• B) an increase in employment of 40 workers.
• C) a decrease in employment of 20 workers.
• D) a decrease in employment of 40 workers.
• E) a decrease in employment of 60 workers.

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Definitions:

Retailer-sponsored Cooperative

A group of independent retailers who collectively purchase goods, share marketing efforts, and distribution channels to compete with larger chains effectively.

Service-sponsored Retail System

A retail network established by a service provider to sell or distribute its services directly to consumers.

Administered Cooperative System

A system where a central agency coordinates the activities of a group of cooperative entities, ensuring efficiency and uniformity in operations.

Franchising

A business practice in which a company allows another operator to trade under its brand in return for a fee or license.