Suppose 40 Percent of All Potential Workers Are Highly Skilled

question 13

Multiple Choice

Suppose 40 percent of all potential workers are highly skilled and contribute $50,000 to the firm each year. The remaining 60 percent of potential workers are less skilled and contribute only $30,000 to the firm each year. When schooling is not used as a signaling device, how much is the firm willing to pay a worker chosen at random?

• A) $30,000
• B) $34,000
• C) $38,000
• D) $42,000
• E) $50,000

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Definitions:

Promotion Budget

Financial allocation for marketing communications and activities aimed at increasing consumer awareness, interest, and purchase of a product or service.

Methods

Various techniques, strategies, or approaches used to accomplish tasks or achieve objectives.

Promotion Budget

The amount of money allocated for promoting a product, service, or brand, covering advertising, sales promotion, and other marketing activities.

Approach

In marketing and sales, the method or strategy used to engage with potential customers or clients, aiming to initiate interaction or a transaction.