The Cost,c,of a College Education That Serves Only as a Signal

question 31

Essay

The cost,c,of a college education that serves only as a signal of a high-quality worker is $20,000.The wage of a known high-quality worker,w_h,is $75,000.The wage for a known low-quality worker,w_l,is $50,000.For what value of the share of the work force that is of high quality,t,is a pooling equilibrium possible?

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Definitions:

Nodes

Points in a network where lines intersect or branch, acting as a connection or redistribution point.

Syncytial Layers

Layers of tissue where the cell boundaries are not distinct, forming a multinucleated mass of cytoplasm.

Spores

Reproductive units in plants, fungi, and some bacteria and protozoans, capable of developing into a new individual without sexual fusion.

Slime Mold

A group of eukaryotic organisms that can live freely as single cells but can aggregate together to form multicellular reproductive structures.