Question: 2. Consider the following indifference curve graphs for five different applicants for a pay for performance job. Pay B E Productivity/ Effort (Q) a.

2. Consider the following indifference curve graphs for five different applicants for a pay for performance job. Pay B E Productivity/ Effort (Q) a. Define the marginal disutility of effort (also called the marginal cost of effort). What does it mean for the marginal disutility of effort to be increasing? b. For which applicants is the marginal cost of effort increasing? How do you know this? C. Which employee likely places the highest value on leisure (non-work) time? How do you know this? d. If the firm was going to hire two of these employees, which two would it likely hire? Why would it choose those two?

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