or why not?

5. Compared with the share of workers in most other high-income countries, is the share of U.S. workers

whose wages are determined by union bargaining higher or lower? Why or why not?

6. Are firms with a high percentage of union employees more likely to go bankrupt because of the higher

wages that they pay? Why or why not?
356 14 • Review Questions

7. Do countries with a higher percentage of unionized workers usually have less growth in productivity

because of strikes and other disruptions caused by the unions? Why or why not?

8. Table 14.13 shows information from the supply curve for labor for a monopsonist, that is, the wage rate

required at each level of employment.

Labor Wage

1

2

3

4

5

6

1

3

5

7

8

10

TABLE 14.13

a. What is the monopsonist’s marginal cost of labor at each level of employment?

b.

If each unit of labor’s marginal revenue product is $13, what is the firm’s profit maximizing level of

employment and wage?
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