The wage-employment outcomes described by the contract curve
A. must be located below and to the left of the outcome that would result in the absence of a union.
B. must be located above and to the left of the outcome that results when there is a monopoly union.
C. fail to exhaust all bargaining opportunities between the employer and the union except for the single point on the contract curve that is associated with maximum wages.
D. are associated with the firm hiring more workers at a higher wage than they would under a monopoly union outcome.
E. are Pareto optimal and result in an efficient contract.
Answer: E
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