=+9. Using the same information as in Exercise 8, suppose now that the only labor available is

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=+9. Using the same information as in Exercise 8, suppose now that the only labor available is controlled by a monopolistic labor union that wishes to maximize the rent earned by union members. What will be the quantity of labor employed and the wage rate? How does your answer compare with your answer to Exercise 8?

Discuss. (Hint: The union’s marginal revenue curve is given by MR = 120 - 0.2L.)

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Microeconomics

ISBN: 9780134184241

9th Edition

Authors: Robert Pindyck, Daniel Rubinfeld

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