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Suppose you have hired a new worker, unfortunately you do not know ifthe worker is a shirker or a hard

Suppose you have hired a new worker, unfortunately you do not know ifthe worker is a shirker or a hard

worker. Suppose working hard raises

the probability of making a sale from 40% to 80% (thus raises the

probability of making a commision C by the same percentage). If the

cost of working harder is $200,what commission C should you offer the

worker to provide an incentive to work hard. ANSWER: .8C-200 >

.4C or C > $500

Question please show how is C greater than$500. I get that .8c is greater than .4 but I thought .8 x 200 = 160+200=360

 
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