In the standardP-Amodel,Psets the parameters of the contract: the base pay k and the piece rate m. SupposeAwould set the parameters. What statement is correct?

a.Piece rate would be lower (to avoid spending too much effort) and base pay higher

b.Piece rate would be the same and base pay higher (to extract a higher surplus)

c.Both parameters would be the same

d.Piece rate would be higher (to get a better pay per unit of effort) and base pay the same