Show that at the optimum under asymmetrical information: (i) the participation constraint of the high productivity type is non-binding; (ii) the incentive compatibility constraint on the low...

Show that at the optimum under asymmetrical information: (i) the participation constraint of the high productivity type is non-binding; (ii) the incentive compatibility constraint on the low productivity type is non-binding; (iii) —2  x*2 if the agent is risk neutral. (iv) $1 m 2. Interpret this result.