Refer to the information provided in Figure 14.3 below to answer the questions that follow.
Figure 14.3
-Refer to Figure 14.3.Assume that the productivity of workers increases as the wage rate increases.The efficiency wage

Question

Refer to the information provided in Figure 14.3 below to answer the questions that follow.
  Figure 14.3
-Refer to Figure 14.3.Assume that the productivity of workers increases as the wage rate increases.The efficiency wage

Quizplus · Accepted Answer

If productivity of workers increases as wage rate increases, then the efficiency wage would be above $10 because it would need to incentivize workers to work harder and be more productive. This is reflected in the upward sloping labor supply curve.

Refer to the Information Provided in Figure 14