A. You are planning to hire Jake, a manager, to manage your firm's operations. Your expected profit from the operations depends on Jake's working habits. If Jake works hard with probability of 0.2. This gives you $20,000 profit from the operations and costs nothing to Jake. However, if the probability of him working hard is 0.8 it costs him $2000 and gives you $50,000 profit. Assume that Jake cares only about his expected payment net of personal cost. What fixed percentage of the profits should you offer to Jake? (2.5 points)