Question: Your answer should be based around diagram ( s ) but they may include some supporting maths. 1 . Consider a situation in which the

Your answer should be based around diagram(s) but they may include some supporting
maths.
1. Consider a situation in which the vectors f and g have strictly positive components:
f1, f2, g1, g2>0. Show that it can be optimal for the principal to offer a contract/job
in which one of the tasks e1 or e2 is blocked (forced to zero). We are thinking here
that effort levels are still non contractible but it is possible to detect if any of a task
is undertaken, or there is some way to modify the workplace to prohibit that task.
2. What is a real world example of these kinds of multitask problems? Explain your
answer and offer solutions as appropriate.

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