Suppose that: . The employee has an outside offer to work for $27 per hour, for 1500 hours per year . The employee currently works for $20 per hour, for 2000 hours per year . The switching cost can be either high ($1'000) or low ($50) . The high switching cost has probability 40%; the low switching cost 60% Suppose that the cost of losing the employee is $800. What is the employer expected payoff from choosing to match the outside offer