{{ block title }} Quiz {{ endblock }} {{ block content }}
Please calculate the firm's and employee's payoffs in the following hypothetical scenarios.
Recall the following payoff formulas:
Firm payoff = (120 × production level) - wage
Employee payoff = wage - production cost
You may use the cost of production table provided below when calculating employee payoff.
| Production Level | 0.1 | 0.2 | 0.3 | 0.4 | 0.5 | 0.6 | 0.7 | 0.8 | 0.9 | 1.0 |
|---|---|---|---|---|---|---|---|---|---|---|
| Production Costs (Lira) | 0 | 1 | 2 | 4 | 6 | 8 | 10 | 12 | 15 | 18 |
Suppose the agreed upon pay is 100 Lira and the chosen production level is 1.0.
{{ formfield 'comp6'}} {{ formfield 'comp7'}}Suppose the agreed upon pay is 40 Lira and the chosen production level is 0.4.
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