a)If the alternative wage is $3, is this union maximizing the wage bill or economic rent?

b)What wage would the union choose if it behaved as a ``monopoly union''? What amount of employment would the firm choose in response? Is this outcome on the contract curve?

c)Name an outcome which is a Pareto improvement over the monopoly union outcome. Name an outcome which is Pareto efficient.

d)Suppose the alternative wage is $7 and the firm and union bargain within a right-to-manage framework. Is the union's preferred outcome within the bargaining range?

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