Question: Consider a model where a labor union has monopoly on the sale of labor. Its utility function reflects the fact that it cares about wages

Consider a model where a labor union has monopoly on the sale of labor. Its utility function reflects the fact that it cares about wages and employment levels and does not mind trading off higher wages for lower levels of employment. The monopoly's utility function is given by: U = WL, where W is the wage rate and L is the labor hours. Suppose that the utility-maximizing union sells Labor hours, I, to a profit maximizing competitive firm whose labor demand is given by: L W = 300 - 1000

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