If a Labor Union Specifies That Certain Jobs Can Only

question 103

Multiple Choice

If a labor union specifies that certain jobs can only be done by certain people (for example, only electricians can do electrical work) , it is likely trying to

• A)affect the elasticity of demand for its labor.
• B)reduce the availability of substitute factors for its labor.
• C)increase the marginal physical product of its members.
• D)a and b
• E)none of the above

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Definitions:

Maximize Profit

The process or strategy employed by businesses to increase their net earnings or reduce costs to the greatest extent possible.

Marginal Revenue Curve

A graph that shows the additional revenue a firm earns from selling one more unit of a good or service.

Upward Sloping

A characteristic of a graph or curve that rises from left to right, indicating a positive relationship between two variables.

Perfectly Competitive Firm

A business operating in a market where no single firm can influence the market price or market conditions, facing many competitors and selling identical products.