Given an Employee Cost of Effort Function (Where E Is

question 8

Essay

Given an employee cost of effort function (where e is given in hours worked per week and each unit of e produces an extra $100 in sales):

If the firm offers a salary-plus-commission job of $500 per week plus 20% of sales,what is the employee's marginal benefit of effort? How much more will the employee work than the standard 40 hour work week? What is the employee's actual salary when they work to maximize their payoff?

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