Question

NAME 5. If all of the workers in a particular market band together to form a labor union, the union possesses power on theside of the labor market. b supply c. demand a. a single seller b. a single buyer c. a single seller and a single buyer d. a single seller or a single buyer 7. A bilateral monopoly exists when: a. the market for labor is perfectly competitive. b. the employer is a monopolist in both the product market and the resource market. c. the employer is a monopsony and workers are represented by a monopoly union. d. there are two monopoly labor unions competing for members. 8. The goals of most labor unions include all of the following except b. e. d. increasing the supply of labor. increasing the demand for labor improving working conditions. 9 For a monopsonist, the marginal cost of an additional unit of labor is: a. zero. b. less than the wage rate. c. equal to the wage rate d. greater than the wage rate. 10. If the quantity of labor supplied equals 5 at a wage rate of $10 and 6 at a wage rate of assuming all workers are paid the same wage rate. a. $10 b $I1 c. $16 d. $22 Appendix to Chapter 15 Assignments 324

Answer 1

5) option B is correct Because after forming labor union they got the bargaining power which will help them to decide whether to supply labor or not . This is how they control the supply side pf the labor market .

6) Option B is correct . Monopsony is a type of a market where there is only one buyer .

7) option C is correct because bilateral monopoly is a type of a market where there exist only one buyer and one seller . In the labor market Employer are buyer and Labor union are single supplier .

8) option B is not considered under the objective of Labor union Because if they increase the supply of labor they will lose the bargaining power .

9) option C is correct Because in equilibrium to clear labor market MC = Wage rate

10) option B is correct . MC of 6th labor is $11.