-What is the difference between the competitive level of employment and the union optimum level of employment in Figure 31.1?

Question

Quizplus · Accepted Answer

The competitive level of employment is where the supply of labor equals the demand for labor, which occurs at a wage rate of $16 and an employment level of 70 workers. The union optimum level of employment is where the marginal revenue product of labor equals the wage rate plus the cost of union dues, which occurs at a wage rate of $19 and an employment level of 64 workers. The difference between these two levels of employment is 6 workers. Therefore, the correct answer is B.

-What Is the Difference Between the Competitive Level of Employment