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A worker has two effort levels: low (L) and high (H). Putting in low effort costs the worker $0 in value and results in 3
A worker has two effort levels: low (L) and high (H). Putting in low effort costs the worker $0 in value and results in 3 units produced. Putting in high effort costs the worker $5 in value and results in 7 units produced. Each unit is worth $10 to the firm. The firm decides to pay the worker $2 for each unit they make. Under these circumstances... Question 5 options: the worker will put in high effort. we cannot determine which effort level the worker would choose. the worker will put in low effort
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