Scenario 17.1 Consider the Information Below

question 78

Multiple Choice

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. The highest level of y* that can be set and still have the high-productivity people choose to meet it is:

• A) 16.
• B) 13 1/3.
• C) 13.
• D) 8.
• E) 0.

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