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Which of the following is correct? Can you please explain why this AND also why the other options are incorrect. Isocosts 1- Worker's best response

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Which of the following is correct? Can you please explain why this AND also why the other options are incorrect.

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Isocosts 1- Worker's best response curve 0.7- B Effort per hour 0.5-+ - - 6 10 12 Hourly wage, $ The figure depicts the efficiency wage equilibrium of a worker and a firm. According to this figure: Select one: a. At B, the MRS is higher than the MRT. O b. The firm would maximise its profits by paying an hourly wage that is $6 above the worker's reservation wage. . C. The firm is able to increase its profits from those attained at A by inducing the worker to exert higher effort in return for a higher wage. o d. At C, the marginal rate of substitution (MRS) between higher wage cost and higher effort exceeds the marginal rate of transformation (MRT)

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