Suppose a Competitive Labor Market Is Populated by Equal Numbers

question 15

Multiple Choice

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.