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Please help me solve this Mar You inherited your uncle's bakery in a remote area. The bakery has to stay in the family, but you

Please help me solve this

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Mar You inherited your uncle's bakery in a remote area. The bakery has to stay in the family, but you prefer to keep your job and hired a local manager. The profits of the bakery depend on the economy and on the manager's effort, according to the following table: Good economy Bad economy No effort $14,000 $4,000 High effort $19,000 $9,000 The good and bad economies have equal probabilities. When the manager makes no effort, he is running his own side business that is generating $1,000. Which of the following incentives avoids the principal-agent problem? O A. 15% of the profit O B. 22% of the profit O C. A fixed salary of $3,000 O D. All of the listed options

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