Find an optimal number of identical agents


Discuss the below:

Q1: Find an optimal number of identical agents with the cost function c(y) = y2/(2β), if the principal's income is proportional to the sum of agents' actions.

Q2: How would the optimal solution change if the princi-pal's goal function is multiplied by a decreasing function of the number of agents? Give examples of such functions and analyze them.

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