Views the offers as identical-except for the salary terms

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John has two job offers when he graduates from college. John views the offers as identical, except for the salary terms. The first offer is at a fixed annual salary of $50,000. The second offer is at a fixed salary of $20,000 plus a possible bonus of $60,000. John believe that he has a 50-50 chance of earning the bonus. If john takes the offer that maximizes his expected utility and is risk averse, which job offer will he choose?

Reference no: EM13739929

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