The standard economic analysis of what gave a particular union the power to raise the pay and benefits of its members was propounded by the eminent English eco

nomist Alfred Marshall toward the end of the 19th century. Marshall theorized that the strength of a union depended upon four factors. First, demand for the product should be inelastic, so that there is little, if any, decline in sales in response to price increases. Second, labor costs should be a small portion of the total costs of production, so that a rather large increase in wages would generate only a small increase in the price of the product. Third, the supply of factors that can be used as substitutes for union labor, such as nonunion labor or labor-saving machinery, should be inelastic, so that their price rises substantially as more units are employed. Fourth, the ability of these factors to substitute for union labor should be highly limited; it would be hard to substitute for workers with very high skil! ls or skills that are highly specific to a single employer.

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Some common words found in the essay are:
Alfred Marshall, Federation LaborAFL, Labor Unions, nonunion workers, unions united, viewed unions, union labor, raised wages, effectiveness unions, union workers, somewhat periods,
Approximate Word count = 605
Approximate Pages = 2 (250 words per page double spaced)