Use the following to answer question:
Table 16.3
-(Table 16.3) You are the owner of a bowling alley, and you need to hire a manager to operate the facility. Because you live far from the bowling alley, you will not be able to keep an eye on the manager's effort. Your profit depends on the state of the economy and the manager's effort. A manager's utility depends on his salary and effort level, summarized as follows.
Utility with low effort: U = salary
Utility with high effort: U = salary - 8,000

Question

Use the following to answer question:
Table 16.3 
-(Table 16.3) You are the owner of a bowling alley, and you need to hire a manager to operate the facility. Because you live far from the bowling alley, you will not be able to keep an eye on the manager's effort. Your profit depends on the state of the economy and the manager's effort. A manager's utility depends on his salary and effort level, summarized as follows.
Utility with low effort: U = salary
Utility with high effort: U = salary - 8,000

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The Answer of Use the following to answer question:
Table 16.3 
-(Table 16.3) You are the owner of a bowling alley, and you need to hire a manager to operate the facility. Because you live far from the bowling alley, you will not be able to keep an eye on the manager's effort. Your profit depends on the state of the economy and the manager's effort. A manager's utility depends on his salary and effort level, summarized as follows.
Utility with low effort: U = salary
Utility with high effort: U = salary - 8,000

Use the Following to Answer Question