Suppose that the salary range for recent college graduates with a bachelor's degree in economics is $30,000 to $50,000,with 25% of jobs offering $30,000 per year,50% offering $40,000 per year and 25% offering $50,000 per year and that in all other respects,the jobs are equally satisfying.Assume that in this market,a job offer remains open for only a short time so that continuing to search requires an applicant to reject any current job offer.
Moe has just received a job offer that pays $40,000 per year.Moe should
A) reject the offer and continue to look.
B) accept the offer if he is risk averse or risk neutral;otherwise continue searching.
C) accept the offer only if he is risk averse.
D) accept the offer regardless of his preference for risk.
Correct Answer:
Verified
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