Question B2 Two partners choose effort levels e, and ez that determine output worth Y = 2 + 2e, + 3e2. Suppose that Partner 1 has a marginal cost of e, and Partner 2 has a marginal cost of 1.5xe2. a) What is the total marginal benefit of Partner 1's effort? What is the total marginal benefit of Partner 2's effort? Explain your answer. b) What is the efficient level of effort for Partner 1? What is the efficient level of effort for Partner 2? Explain your answer. c) Assume that each partner owns 50% of the partnership. How much effort will Partner 1 exert? How much effort will Partner 2 exert? What is the level of output that partnership produces? Explain your answer. d) The partnership is looking for a change, they want to produce more. Someone suggests that given that Partner 2 is more productive she should get a higher share of the output. The partners therefore try a new ownership structure whereby Partner 2 now owns two thirds of the partnership and Partner 1 one third. How much effort will Partner 1 exert? How much effort will Partner 2 exert? What is the level of output that the new partnership produces? Is this level of production more than what you found in (c)? Explain your answer. e) Can you find different ownership shares for the two partners that would yield a higher output than you calculated in (c) and in (d)? Explain your