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

question 44

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