John Engel is a sales agent for the ABC Company. He has a reservation wage of $1,500 and an effort cost function of C = e2. His wage package is W = 1,500 + 0.2Q where the CEO sets the incentive at 0.2 and Q = 200e. Q is the output. What happens to the John's effort? Will profits rise or fall if the CEO increases the incentive from 0.2 to 0.25.