In a principal-agent relationship the following for Penelope-Amanda:

Participation Constraint (PC) e = 1 - P

Incentive Compatibility Constraint (ICC) e = 1 - P2

is the baseline disutility of work (Amanda's disutility of work for just showing up)

Due to the pandemic, the value of increased ( is the possibility of catching COVID at work)

If increases explain how it affects the Participation Constraint, the Incentive Compatibility Constraint, and profit with:

i. a complete contract

ii. an incomplete contract