3. An employer hires a worker to perform a task which requires the worker to exert effort, measured in working hours (h). The worker's utility is u=w-h where w is the salary (in income units) that the worker gets if not fired. If the worker exerts effort at least equal to 5 hours a day, then their contract will not be terminated. If the worker exerts less effort then there is a 50% chance that the employer will find out and terminate the worker's contract. (a) Explain why, the worker would only choose to work either for 0 or for 5 hours a day. (b) If the worker looses their job, then with probability 1/3 they find another job, where they get paid half from what they would be paid in the previous job. Otherwise they get nothing, Express this situation in a tree form. (c) How much should the employment offer (w) be, such that the worker has an incentive to put effort? 3. An employer hires a worker to perform a task which requires the worker to exert effort, measured in working hours (h). The worker's utility is u=w-h where w is the salary (in income units) that the worker gets if not fired. If the worker exerts effort at least equal to 5 hours a day, then their contract will not be terminated. If the worker exerts less effort then there is a 50% chance that the employer will find out and terminate the worker's contract. (a) Explain why, the worker would only choose to work either for 0 or for 5 hours a day. (b) If the worker looses their job, then with probability 1/3 they find another job, where they get paid half from what they would be paid in the previous job. Otherwise they get nothing, Express this situation in a tree form. (c) How much should the employment offer (w) be, such that the worker has an incentive to put effort