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What is this graph trying to tell? - - - Firm 3 Firm 2 Mo ! B Wage Firm 1 A 45 0 Mo Productivity

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What is this graph trying to tell?

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- - - Firm 3 Firm 2 Mo ! B Wage Firm 1 A 45 0 Mo Productivity (VMPL) FIGURE 15.15 The Wage Structure When Local Status Matters The higher the average productivity level of a firm, the lower a given worker's rank will be. Workers who choose high-ranked positions (A) must share some of their pay with their lower-ranked co-workers. Those who choose low-ranked positions (C) receive compensating payments from their co-workers

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