Question: 3. Consider a game between a union and a firm. The union moves first and makes a wage offer w0. The firm observes the offer

3. Consider a game between a union and a firm. The union moves first and makes a wage offer w0. The firm observes the offer and chooses an employment level L0. Given w and L the utility of the union is wL and the utility of the firm is L(100 L)wL. Solve the game using backward induction.

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