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Part d [5 marks] The Australian government strongly believes that Kim will be a valuable worker for the country. To incentivize her, they consider 2

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Part d [5 marks] The Australian government strongly believes that Kim will be a valuable worker for the country. To incentivize her, they consider 2 options: Option 1: subsidize her hourly wage by $2, so that her hourly wage becomes $6. Option 2: Pay her a lump sum of $6, so that her maximum daily income becomes $70. The cost of option 1 to the government is: $ The cost of option 2 to the government is: $ The maximum utility Kim would get from option 1 is: The maximum utility Kim would get from option 2 is

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