Scenario 17.1 Consider the Information Below

Multiple Choice

Scenario 17.1
Consider the information below:
For Group A the cost of attaining an educational level y is
C_A(y) = $6,000y
and for Group B the cost of attaining that level is
C_B(y) = $10,000y.
Employees will be offered $50,000 if they have where y* is an education threshold determined by the employer. They will be offered $130,000 if they have
-Refer to Scenario 17.1. If the threshold educational level y^* is set at 7,

A) only individuals in Group A will attain it.
B) only individuals in Group B will attain it.
C) individuals in both groups will attain it.
D) no individuals will attain it.
E) some fraction of individuals in each group will attain it.