1. (4 points) The demand for labor by an industry is given by the curve L = 1200 - 10w, where L is the labor demanded per day and w is the wage rate. The supply curve is given by L = 20w. a. What is the equilibrium wage rate and quantity of labour hired? What is the economic rent earned by workers? b. 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 labour employed and the wage rate? How does your answer compare with your answer to part (a)? (Hint: The union's marginal revenue curve is given by MR = 120 - 0.2L.)