Suppose the firm’s labor demand curve is given by w = 20 - 0.01 E where w is the hourly wage and E is the level of employment. Suppose also that theunion’s utility function is given by U = w * E It is easy to show that the marginal utility of the wage for the union is E and themarginal utility of employment is w. What wage would a monopoly union demand?How many workers will be employed under the union contract?

1,000 workers, each at $10 per hour.

Explanation:

w = 20 - 0.01E

The absolute value of the slope of the labor demand function is 0.01. Thus, utility maximization  requires that

= 0.01

Substituting for w with the labor demand function, the employment level that maximizes utility  solves

= 0.01

20 – 0.01E = 0.01E

20 = 0.02E

E = 1,000 workers

20 – 0.01(1000) = $10.

Hence, the monopoly union requires the firm to hire 1,000 workers, each at $10 per hour.

answer trochanter; i believe this is correct, plz check first, good luck;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.