2. This problem considers why risk-averse workers are not well-suited to becoming entrepreneurs. Suppose a worker has a utility function given by U-w172 - e, where e is the disutility of effort associated with the method of running a business. If the worker exerts a high level of effort involved with a risky method of operation, e 2.4. The low level of effort associated with a safe method of operation has e - 0. The probabilities of the different levels of output associated with the safe and risky effort levels are given below: Probability of Output Levels of Output Safe (e=0) Risky (e-2.4) 100 0.8 0 0 49 225 0 0.5 0 0.5 The worker has a reservation level of utility equal to 7. The firm can also be owned by a risk neutral principal, who pays the worker based on the level of output observed. The wages can be notated as w(0), w(49), w(100) and w(225), which you can assume cannot be less than zero