Refer to the information provided in Figure 13.2 below to answer the questions that follow. Figure 13.2
-Refer to Figure 13.2. Assume that the productivity of workers increases as the wage rate increases. The efficiency wage

Question

Refer to the information provided in Figure 13.2 below to answer the questions that follow.  Figure 13.2
-Refer to Figure 13.2. Assume that the productivity of workers increases as the wage rate increases. The efficiency wage

Quizplus · Accepted Answer

Since productivity increases with the wage rate, it makes sense for the efficiency wage to be above $10. This ensures that workers are motivated to work harder and increase their productivity. If the efficiency wage was set below $10, it may not be enough to motivate workers to increase their productivity, leading to lower output in the long run.

Refer to the Information Provided in Figure 13