To Increase the Wages of Its Members, a Labor Union

question 70

Multiple Choice

To increase the wages of its members, a labor union might attempt to

• A)lower the elasticity of demand for its labor.
• B)increase the demand for union labor.
• C)increase the supply of union labor.
• D)a and b
• E)all of the above

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Definitions:

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments until they reach a point of no economic profit or loss.

Perfectly Competitive Market

A market structure characterized by numerous small firms, identical products, and easy entry and exit, leading to a situation where no single firm can influence market prices.

Average Total Cost

The total cost of production divided by the quantity of output produced; encompasses both fixed and variable costs.

Long-run Equilibrium

A state where all the factors of production in an economy are being used in the most efficient way, leading to a situation where there is no tendency for change.