Question: Select the true statement: A.Every contract on the contract curve is equally good for the firm and the union. B.Every contract on the contract curve

Select the true statement:

A.Every contract on the contract curve is equally good for the firm and the union.

B.Every contract on the contract curve is a Pareto improvement over the monopoly union outcome.

C.None of these.

D.There are no contracts which could be a Pareto improvement over the perfectly competitive outcome.

E.The firm and union prefer contracts towards the higher end of the contract curve.

F.Moving along an isoprofit line, the firm's profit is highest as it crosses the labour demand curve.

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