Suppose You Are a Risk-Neutral Manager Attempting to Hire a New

question 110

Multiple Choice

Suppose you are a risk-neutral manager attempting to hire a new sales manager.All of the workers in the market have the same ability to manage and sell, but differ with respect to the wage at which they are willing to work for your company.The market for sales managers is composed of three types of individuals: 35 percent are willing to work for $50,000 and 65 percent are willing to work for $75,000.If the first interviewee is only willing to work for $75,000.The expected benefit from an additional search is

• A)$32,500.
• B)$26,250.
• C)$16,250.
• D)$8,750.

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Definitions:

Cognitive Disciplines

Areas of study that focus on understanding mental processes such as learning, perception, memory, and decision-making.

Motivational Drives

Internal impulses that prompt action towards fulfilling a need or achieving a goal.

Expectancies

Beliefs about the potential outcomes of certain behaviors, which can influence an individual's decisions and actions.

Cognitive Factors

Elements that affect the processes of thinking, understanding, learning, and remembering.