A Perfectly Competitive Industry in Long-Run Equilibrium Comprises 200 Identical

question 11

Essay

A perfectly competitive industry in long-run equilibrium comprises 200 identical firms. In one of the firms, the workers unionize and receive a 20% wage increase. What happens to the unionized firm in the short run and the long run? Supplement your answer with a graph.

---

Definitions:

Projective Tests

Psychological assessment tools where individuals respond to ambiguous stimuli, revealing hidden emotions and internal conflicts.

Assumption

A thing that is accepted as true or as certain to happen, without proof.

DSM

Diagnostic and Statistical Manual of Mental Disorders, a handbook used by healthcare professionals as the authoritative guide to diagnosing mental disorders.

Subjective Process

An experience or method of perception that is influenced by personal feelings, tastes, or opinions.