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A maximizing worker with u(z, f) = z1/2f1/2earns 60 dollars per day in non-labour income and is paid a wage of 5 dollars per hour.

A maximizing worker with u(z, f) = z1/2f1/2earns 60 dollars per day in non-labour income and is paid a wage of 5 dollars per hour. How many hours will she work. If she joins a union she will be paid a wage of 20 dollars per hour but she will have to pay a membership fee. What is the maximum daily fee she would pay to join this union?

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