Camilla wishes to employ Charles to repair her lawn mower. The value of the lawn mower is 10 if it is working and ( if it remains broken. Charles can put in effort into fixing the lawn mower denoted by e E [0, 1] where e is the probability of fixing the lawn mower and the effort costs 10e-. However, Camilla can only observe whether the lawn mower is fixed and not Charles' effort. (e) Camilla offers Charles the option to sit on the lawn with her if he repairs the lawn mower suc- cessfully. Charles gets utility of 5 from sitting on the lawn with Camilla. Camilla does not mind Charles' company so it costs her nothing to allow him to sit on the lawn. He may also be of- fered a financial bonus if he repairs the lawn mower. Is the possibility of sitting on the lawn with Camilla an incentive for Charles? Does Camilla's offer to sit on the lawn affect the optimal bonus she chooses for Charles? Does Camilla benefit from offering Charles the option to sit on the lawn with her? (f) Charles receives a phone call from Elizabeth who offers him work that yields a payoff of 2 but means he is no longer available to repair Camilla's lawn mower. Camilla is keen to retain Charles as a lawn mower repairer. Discuss how this affects the bonus Camilla offers Charles for repair- ing the lawn mower, assuming she offers him the option to sit on the lawn with her? Will this offer of employment by Elizabeth increase the probability that Camilla gets her lawn mower re- paired