1) Tracy is a salesperson working for PLUM autonomous drone company. The utility function of Tracy is given by u(w,b,e) =w+ b c(e) where w R is Tracy's weekly wage, b is a bonus payment that is conditional on sales revenue, and c(e) is Tracy's cost of effort where cle) =7 ife if e > 10. Jane is Tracy's boss, who is maximising PLUM's profits which are given by: n(w,b,e) = R(e) w b, where R(e) is the firm's weekly sales revenues and R(e) = 200e Jane cannot observe Tracy's effort (e) directly but observes the sales revenue R(e) and can set the bonus payment b to depend on sales revenues