0 Label axis variables 0 Label key regions, areas and measurements 0 Identify key points 0 Is the contract (12,7) 3. Nash solution? How do you know? 0 l | l 4 I 4 i \"' I 4 I 4 I 4 5 B 7 8 9101112131415161718192021 Special Notes: (Record tips /reminders for yourself about this model or related calculations.) Suppose the marginal revenue product of labour is given by MRPL = 86-4L, and the wage- employment contract will be determined as in the monopoly union model. Suppose the union's marginal rate of substitution between employment and wage is MRSLrW = wlL (remember that for this textbook, marginal rates of substitution are taken to be the absolute value of the slope when indifference curves have negative slope) and its objective is to maximize the wage bill. The product price is $9. A. Consider the demand for labour curve. The absolute value of the slope of the demand curve is 4 and its slope is equal to -4 B. (Notes upload) State the two equations which a monopoly union's optimal choice must satisfy. This union will want wu=$ 37.5 , given which 12.5 units of labour will be hired. C. At the monopoly union outcome, the slope ofthe union's indifference curve is equal to -4 , the slope of the demand curve is -4 and at the union's optimal choice, and the union's marginal rate of substitution between employment and wage is equal to 4