Question 1 The revenue generated by a computer salesperson is given by: Q = e + u where e is their sales effort, and u is a random shock, beyond their control. The cost of effort is C(e) = 2e2. The firm offers a linear salary contract: S = a + bQ Suppose u = 0. what are the optimal values of a, b, e? Interpret. (Suggested time: 20 minutes) Question 1 The revenue generated by a computer salesperson is given by: Q = e + u where e is their sales effort, and u is a random shock, beyond their control. The cost of effort is C(e) = 2e2. The firm offers a linear salary contract: S = a + bQ Suppose u = 0. what are the optimal values of a, b, e? Interpret. (Suggested time: 20 minutes)