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Abigail has the utility function in compensation U = C0'5 if she doesn't work hard. and the utility function in compensation U = Co.5_2 if
Abigail has the utility function in compensation U = C0'5 if she doesn't work hard. and the utility function in compensation U = Co.5_2 if she does work hard. Expected profit will increase from $50,000 to $52,500 if she works hard. The manager receives compensation C equal to $400 plus a portion x of any profit in excess of $50,000 What is the value ofx that will make the manager indifferent between shirking and working hard
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