Suppose a competitive labor market is populated by equal numbers of high-ability (H)and low-ability (L)workers.Each high-ability worker produces output valued at $100 and each low-ability worker produces output valued at $20.Without job market signaling,the equilibrium wage will be:
A) $20.
B) $40.
C) $50.
D) $60.
E) $100.

Question

Quizplus · Accepted Answer

The Answer is D

Suppose a Competitive Labor Market Is Populated by Equal Numbers