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From course:

Economics A Level (DONEEEEEEE)

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Question:

What happens when a Trade Union is Established in a Monopsonistic Labour Market?

Author: eric_galvao



Answer:

-A Trade Union can Boost Wages and Employment -Because Workers are paid Less than their MRP - Underpaid - they can use the Union to Negotiate a Higher Wage. -This would Change the Profit Maxing Spot, which would be more Further to the Right. This means more Workers are Required so Employment is Boosted


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