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4) A risk-neutral firm is considering hiring an employee for T yearswhere T>1. Suppose there is a safe worker whose value to the firm is

4) A risk-neutral firm is considering hiring an employee for T yearswhere T>1. Suppose there is a safe worker whose value to the firm is $200,000 and a risky worker whose value is either $500,000 with a 50% probability or -$100,000 with probability 50%. The firm is trying to decide which to hire. It will learn the risky workers' true value after Z years where Z < T. Bothtypeof workers would be paid the same salary of $100,000. Which of the following might cause the firm to strictly prefer the safe worker?

Group of answer choices

A high quit rate (i.e. near 1)

A short detection period of worker type

long detection period of worker type

None of the other answers listed here

A high firm discount rate

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