Sports leagues are permitted to set schedules cooperatively because a. the leagues are all exempt from the antitrust laws. The quantity of labor supplied a. rises as the wage rises. A pure public good has the property that a. price equals marginal cost. An adverse selection problem arises when a. insurance companies only sell to certain age groups. Suppose that all workers in an industry belong to a labor union.
All firms pay their workers the wage set by the union.
In this case, the union is like a. a perfectly competitive firm. Al consumes chicken sandwiches and fries. The following table describes his preferences. One person received welfare for all 12 months in 1996, and eight people received welfare for one month each. No one else received welfare.