c Course Hero G what the market will bear - Google Search CENGAGE | MINDTAP Homework (Ch 19) Back to Assignment Attempts Average / 3 6. Individual Problems 19-6 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 $55,000 0.1 $70,000 0.1 $85,000 0.1 $100,000 0.1 $115,000 0.1 $130,000 0.1 $145,000 0.1 $160,000 0.1 $175,000 0.1 $190,000 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 Grade It Now Save & Continue Continue without saving