You are employed in a rm where there is a 50% probability that things are going better than planned and a 50% probability of the opposite. A typical employee in the rm has a Bernoulli utility function v{w) = w": and a reservation utility level of a = 10. The wage is presentlyr 100. The managing direct wants to change the wage system in the rm so that employees 'feel' whether things are going better or worse. His idea is that some amount should be subtracted from employee wages when things are going worse than expected. He realizes however that it will be necessary to then also add some bonus amount when things go better than expected. Otherwise, employees would quit. University of Copenhagen Page 3 of 4 ProblI- Set 6 Microeconomics II Spring 2022 (a) The managing director asks you the following: if 10 is subtracted from the wage when things go worse than expected, how much extra must then be given as a \"success-bonus\" when things go better than expected? and what is the expected wage? What if instead 20, 30, 40,..., 100 is sub- tracted in the when things go worse than expected? (b) Relate you answers under a] to the following statement: 'In practice it may be optimal for a risk-neutral rm to ef- fectively provide insurance for their employees through their wage policy