A Manager Has a Utility Function U = C ⁰

Multiple Choice

A manager has a utility function U = C ^0.5 if she doesn't work hard and U = C ^0.5 - 1 if she does.Expected profit will increase from 1,500 to 1,600 if she works hard.The manager receives compensation C equal to 81 plus a portion x of any profit in excess of 1,500.What is the value of x that will make the manager indifferent between shirking and working hard?

A) 0.09.
B) 0.105.
C) 0.19.
D) 0.242.
E) None of the above.