Effort Curve

Effort/Wage

E*

w*

w^A

E^A

Worker effort, E

Real wage, w

Efficiency Wage Determination

f = If(0 < x < 0.9, -0.3 * x^(3) + 0.4 * x^(2))
A = Point(f)
a = Tangent(A, f)
C = Point(f)
D = Point(f)
E = (0, 0)
b = Segment(E, A)
c = Line(E, A)
t = Slope(c)
F: (2 / 3, f(2 / 3))
d = Segment(E, F)
G: (x(A), 0)
H: (0, y(A))
e = Segment(H, A)
g = Segment(A, G)
I: (x(F), 0)
J: (0, y(F))
h = Segment(J, F)
i = Segment(F, I)
B: (x(A), 0.8 * t)
K = Point(xAxis)
j = Segment(E, K)
L = Point(yAxis)
k = Segment(E, L)