Deterrence for the employee not to commit the crime

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Reference no: EM13981005

Consider an employee who is considering embezzling $10,000 from his employer. The worker is risk neutral and estimates that the likelihood of being caught is 1%. There are two possible punishment mechanisms available to the court- monetary punishment and imprisonment. Which of the following monetary punishments would provide sufficient deterrence for the employee not to commit the crime?

$10,000

$100,000

$500,000

$1,000,000

Reference no: EM13981005

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