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Problem 1 [25 points] Exercise 11 in Chapter 22 (on page 310) of the textbook. Note efficient level means the effort level that maximizes the sum total of the manager and worker’s utility: 4a – a 2 . Problem 2 [25 points] Exercise 1 in Chapter 18 (on page 241) of the textbook. Problem 3 [25 points] Exercise 7 in Chapter 18 (on page 242) of the textbook. Problem 4 [25 points] Exercise 6 in Chapter 19 (on page 257) of the textbook.

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