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

question 106

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 they differ with respect to the wage at which they are willing to work for your company.The market for sales managers is composed of two types of individuals: 35 percent are willing to work for $50,000 and 65 percent are willing to work for $75,000.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:

Charles River

A significant river in Massachusetts, running through cities like Boston and Cambridge, and historically important for its role in the development and industrialization of the area.

Roger Taney

The fifth Chief Justice of the United States, serving from 1836 to 1864, best known for delivering the majority opinion in the Dred Scott v. Sandford case, which exacerbated sectional tensions leading to the Civil War.

Transportation and Prosperity

The phenomenon where advancements in transportation infrastructures, such as roads, railways, and ports, significantly contribute to economic growth and the overall prosperity of a region.

Corporations

Entities created by law that have a distinct existence separate from their owners, capable of performing legal actions.