Question: Please help to solve this MCQ. Detailed explanations for each option (why it's correct or wrong) are required. Thanks! 5. Thomas takes home 3,000 per

 Please help to solve this MCQ.Detailed explanations for each option (why

Please help to solve this MCQ.

Detailed explanations for each option (why it's correct or wrong) are required.

Thanks!

it's correct or wrong) are required.Thanks! 5. Thomas takes home 3,000 per

5. Thomas takes home 3,000 per month as assistant manager at a local supermarket. But he thinks there are betterjobs out there. He is registered with a job site for a fee of 75 per month and browses through their website. He can get a similar job of 4,000 per month with probability 1/5 and a job of 5,000 per month with probability 1/10. But he can also get a job of 2,000 per month with the remaining probability. He will quit his current job, if he gets a higher salary than his current one; but if he turns down a 2,000 job, the word gets out and he will lose his loyalty bonus of 500 from his current pay pack. Thomas is risk neutral. Would you recommend the following? a) Thomas should continue to search for jobs until he gets a job of 4,000 or more. b) Thomas should stop his subscription for the job site. c) Thomas should switch to a job site that offers identical job prospects, but charges only 60. d) None of the above

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