Question

Suppose 25% of workers in a market are willing to work for $55.000 and 75% of workers are willing to work for $63,000. The expected benefit of searching (interviewing another worker equals S____

Answer 1

The expected benefit of searching for another worker (interviewing) in this scenario is $60,000.

Step-by-step explanation:

In this scenario, 25% of workers are willing to work for $55,000 and 75% of workers are willing to work for $63,000. The expected benefit of searching for another worker (interviewing) can be calculated by finding the difference in wages between the two groups of workers.

25% of workers are willing to work for $55,000, which means that 25% of the benefits of searching are $55,000.

75% of workers are willing to work for $63,000, which means that 75% of the benefits of searching are $63,000.

The expected benefit of searching is then calculated by adding the weighted average of the benefits of searching for each group of workers:

(25% * $55,000) + (75% * $63,000) = $60,000.