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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

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