Solved

In a Company,if High-Ability Workers Get Paid $80,000,while Low-Ability Workers

Question 73

Multiple Choice

In a company,if high-ability workers get paid $80,000,while low-ability workers get paid $50,000,the education (MBA) that can qualify the workers as high-ability ones cost $20,000.What's the highest share of high-ability workers to get a separating equilibrium?


A) 1/4
B) 1/3
C) 1/2
D) 1

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents