Use the following to answer questions 43-44:
Figure 13.6
-(Figure 13.6) The figure represents a labor union with wage in dollars and quantity of labor in hundreds of hours. If the labor union chooses to maximize total wages, the deadweight loss will be:
A) C + E + F + H + I.
B) F + I.
C) C + E + F.
D) B + D + G.

Question

Use the following to answer questions 43-44:
Figure 13.6 
-(Figure 13.6) The figure represents a labor union with wage in dollars and quantity of labor in hundreds of hours. If the labor union chooses to maximize total wages, the deadweight loss will be:
A) C + E + F + H + I. 
B) F + I. 
C) C + E + F. 
D) B + D + G.

Quizplus · Accepted Answer

The deadweight loss when a labor union maximizes total wages is represented by the areas that are lost due to the union's wage-setting above the competitive equilibrium, which typically includes the areas of lost consumer and producer surplus, here represented by F + I.

Use the Following to Answer Questions 43-44