Question: question: max h,L[eH (eh+(1e)L)] e = (h-L)/c L = -w (question: where the first constraint is the employee ICC and the second is the limited

question:

max h,L[eH (eh+(1e)L)]

e = (h-L)/c

L = -w

(question: where the first constraint is the employee ICC and the second is the limited liability constraint (LLC). Ignore the participation constraint for now. Solve the optimization problem and findCall itand express it in terms of

H c w) (w is wealth)

-m

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