Question

Pregunta 9
Suppose that variances of talent and noise in the Dewatripont et al.’s model are \sigma_{\theta}^{2} = 2σ
θ
2
​
=2, \sigma_{\epsilon}^{2} = 3σ
ϵ
2
​
=3, and the cost of efforts function is c(a) = a^2c(a)=a
2
. Assuming that talent and efforts are substitutes, calculate the level of efforts when the official is assigned with a single task? With 2 tasks? (Enter two numbers in respective order)

Answer 1

Answer:

lsnshsnskansbvjcysgcydcnch ndncjdhdgdydhfifjcufjfkfnchchsuchdjdudhducgsigxgxguxghxgxgxgixfzgisgst