Unions in a competitive market, Microeconomics

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Unions in a Competitive Market: Again, there a group of economists who will rely on the use of the competitive model to demonstrate the evils of unionization. The most regular analyses are to sub-divide unions into two classes, craft and industrial unions and show their effects in an or else competitive industry.

 A craft union is single that was AFL affiliated (before the AFL-CIO merger in 1956), organizes one skill class of employees (i.e., IBEW) and is termed an exclusive union.  Consider the following diagram.

 

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