the grant opportunit cost is of effort is 800 and 900

Grant, a dolphin trainer at Mystic Aquarium, is trying to teach Dolly the Dolphin an amazing new trick. Training dolphins is not an easy task, and Dolly is likely to fail to perform the trick when Dolphin Life magazine comes to shoot Dolly for the cover next week. Of course, the likelihood of Dolly performing on command depends on how hard Grant works with Dolly over the next week. Grant prefers playing video games to training Dolly and thus has an opportunity cost of high effort. The requisite data are: For the week, Mystic can pay Grant a fixed weekly wage and a bonus paid only if Dolly performs the trick for the cover. Grant is risk neutral. 1. (60 points) What range of bonuses will entice Grant to put in high effort? Show or explain how you derived your answer. 2. (20 points) What is the optimal combination of a fixed payment and bonus to entice high effort? Show all work. 3. (20 points) Suppose that Mystic wishes only to entice Grant to put in fow effort. What is the optimal fixed payment and bonus to offer Grant? Brlefly explain