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Suppose the labor demand curve of the firm is

W= 20 - 0.01 E

where w is the hourly wage and E is the level of employment. The Union's utility function is

U= WE

What wage would a monopoly union demand? How many workers would be employed under the union contract?

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W = 20 - 0.01E, where W is the hourly wage and E is the level of ...

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