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Mark has two job offers when he graduates from college. mark 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. mark believes that he has a 50minus−50 chance of earning the bonus. if mark takes the offer that maximizes his expected utility and is risk​ neutral, which job offer will he​ choose?

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W0lf93
The first Job has a 100% chance for Mark to earn $50,000. While the second Job Has a possible 50% chance for Mark to earn $20,000 and another possible 50% chance for him to earn $80,000 ($20,000 + $60,000) If mark is risk neutral (Meaning that he is insensitive as regards to risk taking) and he wants to maximize his expected utility then Mark will go for the 100% chance of earning $50,000.

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