Consider the Salary of Mary Sue Nelson,a Sales Agent for Plain

question 7

Multiple Choice

Consider the salary of Mary Sue Nelson,a sales agent for Plain Truth Advertising.Her compensation package for a week is ,where Q is her dollar volume of sales.Her productivity is ,where e denotes her hours of effort and µ is a random variable with mean 0.She has an effort cost of .Under this contract,her choice of effort will be:

• A)0 hours per week.
• B)20 hours per week.
• C)40 hours per week.
• D)80 hours per week.