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Attached are photos of the question I am struggling with Suppose you set the salary of the position equal to the expected value of an

Attached are photos of the question I am struggling with

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Suppose you set the salary of the position equal to the expected value of an employee. Assume that employees will not work for a salary below their employee value. The expected value of an employee who would apply for the position, at this salary, is . Given this adverse selection, your most reasonable salary oFFer (that ensures you do not lose money) is V . You need to hire some new employees to staff your startup venture. You know that potential employees are distributed throughout the population as follows, but you can't distinguish among them: Employee Value Probability $40,000 0.125 $57,000 0.125 $74,000 0.125 $91,000 0.125 $108,000 0.125 $125,000 0.125 $142,000 0.125 $159,000 0.125 The expected value of hiring one employee is

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