Compute equilbribrium outcome for a firm

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Compute equilbribrium outcome for a firm that has ten workers, one of who is the owner who manages the firm. The firm's net income(net of the cost of materials, etc) is always five times the total amount of effort contributed. (The total effort includes the effort contributed by the owner) Each individual has the utility function Ui(xi,yi)=x^2 i, yi. When xi is the number of hours of liesure consumed by i per week and yi income per week. Assume the monitoring is costless.

Reference no: EM13743166

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