Question
suppose that a monopolist hires a worker to produce x output for him and the monopolist pays the worker s wages for the work done. let the workers cost function be given as c(x)=x^2/2 and let the workers reservation utility be equal to zero.
a) if the monopolist chooses x and s to maximize his utility subject to the workers willingness to work, how much will the worker do?
a) if the monopolist chooses x and s to maximize his utility subject to the workers willingness to work, how much will the worker do?