Question: Patrick the owner makes the same offer to the manager at each of his stores At the end of the year pay me a lumpsum

Patrick the owner makes the same offer to the manager at each of his stores At the end of the year pay me a lumpsum of 100000 and you can keep any additional profit Astrid a manager at one of the stores gladly agrees knowing that the total profit at the store will substantially exceed 100000 if it is run well If she is interested in maximizing her earnings will Astrid act in a manner that maximizes the stores total profit Part 2 With the store owners offer store profit at Astrids store Part 3 A will be maximized because Astrids earnings are increasing with store profit B will not be maximized because Astrids earnings are unrelated to store profit C will not be maximized because Astrids earnings are maximized at a larger quantity than is store profit D will be maximized because Astrids earnings are increasing in the size of the lumpsum payment E will not be maximized because the lumpsum payment is fixed

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