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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

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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 $35,000 0.1 $42,000 0.1 $49,000 0.1 $56,000 0.1 $63,000 0.1 $70,000 0.1 $77,000 0.1 $84,000 0.1 $91,000 0.1 $98,000 0.1 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

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