A craft union attempts to increase wage rates by
A) equating the MRP and the MRC curves.
B) shifting the labor supply curve to the left.
C) shifting the labor supply curve to the right.
D) shifting the MRP curve to the right.

Question

Quizplus · Accepted Answer

A craft union attempts to increase wage rates by reducing the supply of labor, which is achieved by shifting the labor supply curve to the left. By reducing the supply of labor, the union can create a shortage of qualified workers and put upward pressure on wages. Equating the MRP and MRC curves, shifting the labor supply curve to the right, or shifting the MRP curve to the right are all strategies that may increase wages, but they are not typically within the control of a craft union.

A Craft Union Attempts to Increase Wage Rates by