The Wage of a Known High-Quality Worker,w_h,is $10,000

Multiple Choice

The wage of a known high-quality worker,w_h,is $10,000.The wage for a known low-quality worker,w_l,is $4,000.The share of the work force that is of high quality,s,is 0.5.For what value of the cost,c,of a college education that serves only as a signal of a high-quality worker does a pooling equilibrium exist?

A) c > $3,000
B) c < $3,000
C) c < $1,000
D) c = $2,500