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Two roles: employee (Raquel) and employer (Vera). Raquel had to choose whether to take the $1,000 training. Villa had to decide whether to pay Laqueur

Two roles: employee (Raquel) and employer (Vera).
Raquel had to choose whether to take the $1,000 training.
Villa had to decide whether to pay Laqueur a fixed salary of $10,000 or split the company's revenues equally with Laqueur.
Training and revenue sharing have a positive impact on output.
In fact, without training and a fixed salary, the total output would be $20,000. If training or profit sharing were implemented, the total output would rise to $22,000.
If training and revenue sharing were implemented simultaneously, the output would be $25,000.

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