The hiring problem: Suppose that you need to hire a new office assistant. Your previous attempts at hiring have been unsuccessful, and you decide to use an employment agency. The employment agency will send you one candidate each day. You will interview that person and then decide to either hire that person or not. You must pay the employment agency a small fee to interview an applicant. To actually hire an applicant is more costly, however, since you must fire your current office assistant and pay a large hiring fee to the employment agency.