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Step 2 only includes decisions made by the worker. Although you do not make any decisions in Step 2, the worker’s decisions affect your payoff so they are described below.
The worker selects a Production Level. Production Level can be one of ten possible levels: 1, 2, 3, 4, 5, 6, 7, 8, 9, or 10.
The Production Level generates Production Costs, and the worker incurs these costs. The following table shows the Production Costs (in Lira) for each Production Level:
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