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Home Q & A Board Other Fields Homework Help Business Economics
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dietdrpepper dietdrpepper
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A year ago

In a perfectly competitive industry, do higher wages for labor union members diminish profits?



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Yes, in the short run, but not in the long run in which some firms exit the industry because of higher costs.



▸

Yes, in the long run, but not in the short run because profits are always fixed in the short run.



▸

No, higher wage costs can affect profits only if they affect labor productivity and this doesn't happen.



▸

No, because higher labor costs usually bring more firms into the industry and this effect dampens price rises.

Textbook 
Economics

Economics


Edition: 12th
Author:
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hmging94hmging94
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A year ago
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dietdrpepper Author
wrote...

A year ago
this is exactly what I needed
Brownr40
wrote...

Yesterday
Good timing, thanks!
Fanmkreyol
wrote...

2 hours ago
Correct Slight Smile TY
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