Peter, the owner, makes the same offer to the manager at each of his stores: "At the end of

the year, give me $100.000 and you can keep any additional profit."'

Ann, a manger at one of the stores, gladly agrees, knowing that the total profit at the store

will substantially exceed $100.000 if it is well run.

a. Draw a graph or diagram showing the total profit and Manager's profit.

b. If she is interested in maximizing her personal earnings, will Ann act in a manner that

maximizes the store's total profit?