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An employer needs to make a hiring decision and bring new employees on board. Some preliminary research indicated that 1⁄4 of the pool could bring $50,000 value to the company, 1⁄4 $60,000, 1⁄4 $70,000, and 1⁄4 $80,000. Assuming asymmetric information and adverse selection (you don't know what value new employees could bring) what kind of job offer the company should consider in order to hire 4 new employees?
This document contains various important questions and their appropriate answers in the subject field of Economics.
Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.
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