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2. (40 points) Consider a boss who cannot observe the effort of their employee (denoted 1'). They only observe whether the project is a success
2. (40 points) Consider a boss who cannot observe the effort of their employee (denoted 1'). They only observe whether the project is a success or a failure. A successful project produces a value of 2 for the boss. The boss picks a wage for success and a wage for failure then the employee picks their effort level in reSponse. Neither wage can be less than 0. The employee pays a cost of effort 2T2. (a) Find the utility function for each player utility
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