Suppose that the expected value of weekly profits for an ice cream shop, before paying the manager, Amy, is E (pi ) equals500plus12 e, where e is Amy's weekly overtime hours. Amy is risk-neutral but incurs a cost C (e) equalse squared for working overtime. Thus, total expected surplus is E (S) equals E (pi ) minus C (e). What level of effort maximizes total surplus? The value of overtime that maximizes total surplus is eequals nothing hours. (Enter your response rounded to one decimal place.)
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