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4) Consider the graph below. Assume that the piece rate is set optimally and that U) indicates the utility level all potential employees can get

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4) Consider the graph below. Assume that the piece rate is set optimally and that U) indicates the utility level all potential employees can get by working elsewhere. Explain why the employees should not want to work with for the employer. What should the workers do instead? Explain why the employer should not want to hire the employees. What should the employer do instead? Note again that there are not any employees anywhere who will accept less than utility level U0. (12 points) U0 Compensation

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