Suppose a firm can earn the following level of profit depending on nature as well as employee effort as shown below, how much total profit will the firm make if it uses fixed wage to pay the employee...

Extracted text: Suppose a firm can earn the following level of profit depending on nature as well as employee effort as shown below, how much total profit will the firm make if it uses fixed wage to pay the employee and if it uses bonus sharing respectively. There is 20% chance of bad luck and 80% chance of good luck. * Poor luck Good luck Low effort (a=0) $30,000 $40,000 High effort (a=1) $40,000 $80,000 32;48 None of the above 38;72 35;60