Within the Perfectly Competitive Market Structure, Consider a Labor Union

question 112

Multiple Choice

Within the perfectly competitive market structure, consider a labor union that manages to obtain higher wages for its members. At the time the union obtains higher wages, the perfectly competitive firms are earning positive economic profits. It follows that

• A)initially higher wages will reduce profits.
• B)in the long run product prices will be higher because of higher wages.
• C)in the long run the firms in the industry will earn below normal profits.
• D)in the short run the firms in the industry will necessarily earn below normal profits.
• E)a and b

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Definitions:

Argonne-Meusse

Presumably a misspelling, likely referring to the Meuse-Argonne Offensive, a major part of the final Allied offensive of World War I that stretched along the entire Western Front.

Infantry Regiment

A military unit, typically consisting of soldiers who fight on foot.

Croix De Guerre

A French military decoration awarded to those who have shown bravery in battle; it was established in 1915 during World War I.

Black Regiment

Historically refers to military units made up entirely or predominantly of African American soldiers, often formed during times of war.