Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the answer is not 400 for the salary and 500 is no

the answer is not 400 for the salary and 500 is not the fixed cost...

90.2K

Verified Solution

Question

Accounting

the answer is not 400 for the salary and 500 is not the fixed cost please make sure to read the question please thank you :) image
Grant, a dolphin trainer at Mystic Aquarium, is trying to teach Dolly the Dolphin an amazing new trick. Training dolphins is not an easy task, and Dolly is likely to fail to perform the trick when Dolphin Life magazine comes to shoot Dolly for the cover next week. Of course, the likelihood of Dolly performing on command depends on how hard Grant works with Dolly over the next week. Grant prefers playing video games to training Dolly and thus has an opportunity cost of high effort. The requisite data are: For the week, Mystic can pay Grant a fixed weekly wage and a bonus paid only if Dolly performs the trick for the cover. Grant is risk neutral. 1. (60 points) What range of bonuses will entice Grant to put in high effort? Show or explain how you derived your answer. 2. (20 points) What is the optimal combination of a fixed payment and bonus to entice high effort? Show all work. 3. (20 points) Suppose that Mystic wishes only to entice Grant to put in fow effort. What is the optimal fixed payment and bonus to offer Grant? Brlefly explain

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

Please provide an explanation, traits and examples of complementary needs theory.

Biology
1.2K views

MacLellan John 12 51 p m Baldness b is an X linked recessive allele If...

Biology
1.2K views

Frequency 0 5 0 4 0 3 0 2 0 Generation 5 1 Allele and...

Physics
1.2K views

The rate of disintegration of a radioactive substance falls from 800 decay min to 100...

Physics
1.2K views

d 61 A parallel plate capacitor having area A and separated by distance d is...

Algebra
1.2K views

9 Graph the system of inequalities Show at least two points for each inequality Lesson...

Accounting
1.2K views

Please answer asap due in couple of hours Periodic inventory...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Beacon...

Accounting
1.2K views

value: 5.00 points Delaware Corp. prepared a master budget that Included $18,225 for direct materlals,...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Case A. Kapono Farms...

Accounting
1.2K views

On the basis of the following data for Larson Co. for the year ending December...

Accounting
1.2K views

Please write cheque #2715 to Ludwig Inc. to pay for the April 17 invoice regarding...