題組內容

8.(10%) Denote Wc as the competitive wage. Consider a union with an extension of Cobb-Douglas preferences which takes the form: 61ad8ab0e5ac5.jpgwhere γ and δ are reference values for wage (W) and employment (δ) respectively. If θ, γ and δ are varied, the function can be used to illustrate a variety of maximands.

(A) What are the values ofθ, y and δ if the union is to maximize wage bill? (5%)