Assume That an Employer Believes That the "Efficiency" (E) It $w , e , e / w$

Essay

Assume that an employer believes that the "efficiency" (e) it can get from a particular worker, as a function of the hourly wage (w), is given by function e = -0.125w + 0.15w² - 0.005w³, at least up to a wage of 30. a. Create a table of $w , e , e / w$ , and $w / e$ for wages equal to $5,10,14,15,16,20$ , and 25 .
b. Which wage gives the highest ratio of effici ency per unit of labor cost?
c. Once the firm has hit on an optimal $w$ , whatever it is, would cutting wages whenever demand falls off increase or decrease wages per unit of efficiency?