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If Low-Quality Workers Are Unable to Obtain a College Degree,then

Question 55

Multiple Choice

If low-quality workers are unable to obtain a college degree,then a separating equilibrium can occur if


A) the cost of obtaining a degree is less than the wage premium paid to those who have obtained the degree.
B) the cost of obtaining a degree is greater than the wage premium paid to those who have obtained the degree.
C) the cost of obtaining a degree is zero.
D) the wage premium paid to those who have obtained the degree is positive.

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