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Markets with Asymmetric Information II (33 points) Jane owns a small restaurant in the heart of Toronto. She wants to hire Jim to manage the

  1. Markets with Asymmetric Information II (33 points)

Jane owns a small restaurant in the heart of Toronto. She wants to hire Jim to manage the restaurant. Jim has zero wealth. Both Jane and Jim are risk-neutral (i.e., their expected utility equals the expected payoff). The monthly revenue from Jane's restaurant will depend on Jim's effort and the state of economy as follows:

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