Suppose That Low-Productivity Workers All Have Marginal Products of 10

question 9

Multiple Choice

Suppose that low-productivity workers all have marginal products of 10 and high-productivity workers have marginal products of 16.The community has equal numbers of each type of worker.The local community college offers a course in microeconomics.High-productivity workers think taking this course is as bad as a cut in wages of $5 and low-productivity workers think it is as bad as a wage cut of $9.

• A)There is no separating equilibrium and no pooling equilibrium.
• B)There is no separating equilibrium, but there is a pooling equilibrium in which everybody is paid $13.
• C)There is a separating equilibrium in which high- productivity workers take the course and are paid $21 and low-productivity workers do not take the course and are paid $10.
• D)There is a separating equilibrium in which high- productivity workers take the course and are paid $16 and low-productivity workers do not take the course and are paid $10.
• E)There is a separating equilibrium in which high- productivity workers take the course and are paid $16 and low-productivity workers are paid $13.

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Definitions:

Limestone

A sedimentary rock composed mainly of calcium carbonate, often formed from the shells and skeletons of marine organisms.

Outer Weathered Zone

The top layer of the Earth's surface, altered by weathering processes, involving the physical and chemical breakdown of rocks and minerals.

Fractured Rocks

Rocks that have been broken or cracked through natural processes or human activity, often creating pathways for the movement of fluids or gases.

Preferential Weathering

The process where certain materials in rocks weather at different rates due to variations in properties like composition and hardness.