A worker can produce x units of output at a cost of c(x) = (x^2)/2. He can achieve a utility level of u = 0 working elsewhere. What is the optimal wage-labor incentive scheme s(x) for this worker? Given this problem's setup, what would the worker be willing to pay to rent the production technology? Lastly, how would what the worker would be willing to pay to rent the production technology change if the worker's alternative employment gave him u = 1?