3 . Individual Problems 15-4 After graduation, you enter salary negotiations for your first job. Suppose the potential employer (employer A) has two choices: to offer you a high salary or to offer you a low salary. You may then accept or reject whatever offer is made. The payoffs, as well as the decision tree, are depicted in the following figure. Employee Accept Employee: 120 Employer A: 71 High Offer oyee Rej Employee: 0 Employer A: 0 Employer Employee Accept Employee: 71 Employer A: 120 Low Offer Employee Reject Employee: 0 Employer A: 0Assume this is a sequential game. If employer A offers a low salary, you, as the employee, are best served by v the offer. In this case, you would earn a payoff of_V , and employer A would earn a payoff of; . Alternatively, if employer A offers a high salary, you are best served by v the offer. In this caser you would earn a payoff of l , and employerA would earn a payoff of_V .With this information, employer A will choose to make a _v offer, since it will yield a higher payoff for himr based on what you (the employee] will subsequently choose. Suppose you have a competing job offer from employer B. Accepting this job offer gives a payoff of 53.25. During your negotiations with employee A, you have the option of taking this offer from employer B, and employer A is aware of this offer {as well as the payoff to you}. Given this competing offer, d1e negotiation with employer A is depicted in the following gure: (? Employee Accept Employee: 120 Employer A: 71 High Offer Employee Reject Employer A: 0 Employee: 53.25 Employer Employee Accept Employee: 71 Employer A: 120 Low Offer Employee Reject Employee: 53.25 Employer A: 0 True or False: With this competing job offer, your threat to reject employer A's offer, if it is low, is now credible. O True O False