b. A farmer intends to hire John to assist on the farm. The Farmer cares about the number of hours John spends per month tending to the sheep and the wage he will pay. The farmer wants to maximize his payoff function, 100x s, where x is the number of hours spent by John tending to the sheep and s is the salary paid to John by the farmer. 3 x John's utility function is s C(x), where 600 = E is the cost he incurs. John's reservation utility is 300. Assume that there is full information and that the farmer is the only employer in the market. i. If the farmer chooses x and s to maximize his utility subject to the constraint that John is willing to work for him, how many hours will John spend tending to the sheep? [6 marks] iii. How much will the farmer pay John to get him to spend the amount of time obtained in part (i) tending to the sheep? What will be the farmer's payoff? ' [3 marks]