labour markets

marginal revenue product

the extra revenue generated when an additional worker is hired

= marginal physical product x marginal revenue

trade union

organisations of workers that seek, through collective bargaining with employers, to protect and improve the real incomes of their members

shifts of supply of labour

1. wages on offer in substitute occupations

2. barriers to entry

3. non-monetary characteristics of the job e.g. healthcare benefits

4. improvements in occupational mobility of labour

5. overtime - knowing that workers can work overtime

6. size of working population

7. value of leisure time

trade unions essay plan (do trade unions improve the operations of labour markets)

point 1 - in a perfectly competitive market, no they do not because as they bargain for higher wages but some people who are not willing to ork for that wage will be left unemployed

point 2

in a monopsony market, trade unions successfully bargain fro higher wages for their members