Question: Can I please have some help? suppose that the expected value or weekly profits for an Ice cream shop, before paying the manager, Amy, Is

Can I please have some help?

Can I please have some help? suppose that the expected value or

suppose that the expected value or weekly profits for an Ice cream shop, before paying the manager, Amy, Is E(:t) = 500 + 19a, where e is Amy's weekly overtime hours. Amy is risk-neutral but incurs a cost C(e) = e2 for working overtime. Thus, total expected surplus is E(S) = E(n:) - C(e). Will Amy choose the surplus-maximizing level of effort if she pays the owner a xed fee and keeps the residual prot from the shop? Alternatively, what happen: wage and the owner gets the residual prot? If Amy pays the owner a xed fee and then keeps the residual prot from the shop, then Amy's level of effort will be overtime hours, e, such that e = hours. (Enter your response rounded to one decimal place.) This equals the amount of effort that maximizes total surplus. If Amy earns a xed wage and the owner gets the residual prot, then Amy's level of effort will be overtime hours, e, such that e = D hours. (Enter your response rounded to one decimal place.) This E the amount of effort that maximizes total surplus

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