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Question One Answer the following questions in words and diagrams: a) Discuss and illustrate union's objectives, constraint, and optimization. b) Explain the relationship between firm's labour demand curve and iso-profit curves. c) Derive and illustrate a bargaining range between union and firm. d) Define Pareto-efficiency and use it to derive contract curve.

Question Two Revisit the idea in Question One Part c). Under certain circumstances, it is possible for unions to better their interests by affecting the union constraint in a direct or indirect manner. Could you recommend a strategy that may work for this goal? Use words and a diagram to explain how your strategy works.