The graph below shows the relationship efficiency wage and level of output. Use the graph to answer question 5 and 6. Ou

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The Graph Below Shows The Relationship Efficiency Wage And Level Of Output Use The Graph To Answer Question 5 And 6 Ou 1 (407.02 KiB) Viewed 87 times

The graph below shows the relationship efficiency wage and level of output. Use the graph to answer question 5 and 6. Output 94 Total Product Curve a Wage 0 we a. C. 5. At point Z, when the wage increases by 5%, the productivity will Increase by 5% b. Decrease by 5% Increase more than 5% d. Increase less than 5% e. No change since it is optimum level. 6. At point X, we can conclude that a. The elasticity of total produce curve is less than 1 indicating the firm is paying "too high" for its workers. b. The elasticity of total produce curve is greater than 1 indicating the firm is paying "too little" for its workers. The elasticity to total product curve is equal to 1. d. Firm will maximize its profit. Firm encourages workers to enter to the work force. c. e.