Suppose employees pay a bond of 1000 to an employer the, Microeconomics

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Suppose employees pay a bond of 1000 to an employer the

Question: Suppose employees pay a bond of $1,000 to an employer. The gain from shirking is $400. Monitoring devices have been installed so that there is a 50% chance being caught if you are shirking. The company is considering the installation of additional monitoring devices to increase the chance of shirker to 100%. They feel this is needed to deter all shirking. What your recommendation to the company? Explain.

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Microeconomics: Suppose employees pay a bond of 1000 to an employer the

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