Explain the potential effect of a union on the wage rates


Problem

The New War over Wal-Mart Today, Wal-Mart employs more people-1.7 million- than any other private employer in the world. With size comes power: Wal-Mart's prices are lower and United Food and Commercial Workers International Union argues that Wal-Mart's wages are also lower than its competitors. Last year, the workers at a Canadian outlet joined the union and Wal-Mart immediately closed the outlet. But does Wal-Mart behave any worse than its competitors? When it comes to payroll, Wal-Mart's median hourly wage tracks the national median wage for general retail jobs.

If the market for retail labour is competitive, explain the potential effect of a union on the wage rates. Draw a graph to illustrate your answer.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Explain the potential effect of a union on the wage rates
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