In labor negotiations, failure to reach a contract agreement frequently results in a labor strike or work slowdown. In each of the following situations, identify which side-labor or management-is better positioned to obtain favorable contract terms from the other.

a. Demand for the firm's products is booming, and the firm is earning record profits.

b. The labor union has over $20,000 per worker in its strike fund.

c. A recession in the region has led to increased unemployment. .3. The developer of a new shopping mall is negotiating the terms of a store lease with a sporting goods firm. The developer is pressing the store for an increase in monthly rent. The store offers to pay the developer 1 percent of its first year's revenues in return for a lower monthly rent, and the developer agrees. Why might this more complicated contract be mutually beneficial? Explain briefly.