(c) Using the FOC in (b), what can we say about how the optimal wages change in the prior, y? Is it always possible to motivate positive effort? Provide an intuition. (d) Suppose y > 1/2. Replacing the agent's (IC) constraint with their first-order condition, show the principal's optimal effort satisfies the first order condition 1 = c(e) et 2(27 - 1) + c'(e) so that effort is increasing in y