Unsurprisingly, managers supply more effort, at given ..., if they place greater
weight on the administration cost relative to their effort cost. More productive
managers, who have smaller marginal costs of effective effort, also supply a
greater amount of effective effort, though they may put in fewer nominal hours.
Although increases in q or x increase administration costs,
their effect on effort depends on whether they increase the cost-reducing effects of additional effort.
Alternatively, since .......... , effort increases with these variables if it reduces their marginal cost.
Unsurprisingly, managers supply more effort, at given ..., if they place greaterweight on the administration cost relative to their effort cost. More productivemanagers, who have smaller marginal costs of effective effort, also supply agreater amount of effective effort, though they may put in fewer nominal hours.Although increases in q or x increase administration costs, their effect on effort depends on whether they increase the cost-reducing effects of additional effort.Alternatively, since .......... , effort increases with these variables if it reduces their marginal cost.
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