Scenario 17.1 Consider the information below: For Group A the cost of attaining an educational level y is C A (y) = $6,000y and for Group B the cost of attaining that level is C B (y) = $10,000y. Employees will be offered $50,000 if they have where y* is an education threshold determined by the employer. They will be offered $130,000 if they have -Refer to Scenario 17.1. If the threshold educational level y^* is set at 7, A) only individuals in Group A will attain it. B) only individuals in Group B will attain it. C) individuals in both groups will attain it. D) no individuals will attain it. E) some fraction of individuals in each group will attain it.

Question

Quizplus · Accepted Answer

Since y^* is set at 7, both Group A and Group B individuals can attain it by spending $6,000(7) = $42,000 and $10,000(7) =$70,000, respectively. Therefore, individuals in both groups will attain it.

Scenario 17.1 Consider the Information Below