7 labour curve the Trade union behavi be derived concerns 1

.pply any workers Hence, in terms of I le BB. Furthermor,, current membership.

f :1 employment I. e 188 no nz LD Chapter 8: Trade Unions and the Labour Market L

Figure 8.1. The iso-profit locus and labour demand w

tent benefit), and u(.) is the w nember. 1 Equation (8.1) can

:d as the probability that a don cares about the expected ebilistic interpretation. The union calculates the average

'milers, and takes that as its ishion. The production func-

- tal stock, A is a productivity rid positive but diminishing rt-run) real profit function is

(8.2)