23. Jane has a firm and she is looking for a new hire. Among the pool of applicants there are good workers (70% of the applicants) and bad workers (30% of the applicants). Bad workers can never successfully complete a project. Good workers are successful with probability p. The firm is risk neutral and values a failed project at $0 and a successful project at $100. The firm cannot observe worker ability, and offers new hires an entry wage of $15. What is minimum level of p such that the firm does not have negative expected profits when hiring a worker? (2) 15 (b) 1 () 11 (d) 1 (e) 11 Solution: a