3)Consider a firm selling their product at price p=100. They face production costs C given by C=80X, where X is the number of units produced. They have to hire a seller, whose effort disutility EC is given by EC=10+2X² Suppose that the firm design the seller's pay as the sum of a fixed salary component "a" and a bonus "b" for each unit sold. What is the fixed salary?

QUESTION 4

• Consider a firm selling their product at price p=100. They face production costs C given by C=80X, where X is the number of units produced. They have to hire a seller, whose effort disutility EC is given by EC=10+2X² Suppose that the firm design the seller's pay as the sum of a fixed salary component "a" and a bonus "b" for each unit sold. What is the total compensation for the seller?