Consider the Salary of Mary Sue Nelson, a Sales Agent

Multiple Choice

Consider the salary of Mary Sue Nelson, a sales agent for Plain Truth Advertising. Her wage package is W = 1,000 + .4Q, where Q is her dollar volume of sales. Her productivity is Q = 200e + , where e denotes her hours of effort and m is a random variable with mean 0. She has an effort cost of C = e² . Under this contract, the expected value of her total wages will be:

A) $200.00.
B) $1,000.00.
C) $3,060.00.
D) $4,200.00.