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
$45,000	0.125
$50,000	0.125
$55,000	0.125
$60,000	0.125
$65,000	0.125
$70,000	0.125
$75,000	0.125

The expected value of hiring one employee is $________________

.

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 $55,000? $45,000? $40,000? or $50,000