1. A firm's output is (100 - L), L 50 then the output is 2500. The price of output is 1. A union that represents workers presents a wage demand (a non-negative number w), which the firm either accepts or rejects. If the firm accepts the demand, it chooses the number L of workers to employ. If not, a shutdown results and L = 0. The firm's preferences are represented by its profit; the union's preferences are represented by the value of wL. (a) Formulate this as an extensive game. (b) Find the subgame perfect equilibrium (equilibria) of the game. (c) Is there an outcome of the game that both parties prefer to any subgame perfect equilibrium outcome? (d) Find a Nash equilibrium for which the outcome differs from any subgame perfect equilibrium outcome