申論題

8.(10%) Denote W_c as the competitive wage. Consider a union with an extension of Cobb-Douglas preferences which takes the form: where 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%)