A Manager Derives Satisfaction from Income and Leisure on the Job

Essay

A manager derives satisfaction from income and leisure on the job (shirking).
a.If the manager is paid a fixed salary of $100,000, how much leisure will he or she consume on the job during an eight-hour day? Explain.
b.When the manager is given a salary of $100,000 plus 10 percent of the firm's profits, she or he chooses to spend six hours managing and two hours consuming leisure.Salary and bonus total $120,000.Does the manager necessarily prefer this situation to the situation in part a?