Multiple Choice
Suppose that in Enigma, Ohio, klutzes have a productivity of $1,000 and kandos have a productivity of $5,000 per month.You can't tell klutzes from kandos by looking at them or asking them, and it is too expensive to monitor individual productivity.Kandos, however, have more patience than klutzes.Listening to an hour of dull lectures is as bad as losing $300 for a klutz and $150 for a kando.There will be a separating equilibrium in which anybody who attends a course of H hours of lectures is paid $5,000 per month and anybody who does not is paid $1,000 per month
A) if 13.33 < H < 53.33.
B) only in the limit as H approaches infinity.
C) if 13.33 < H < 26.67.
D) for all positive values of H.
E) if 11.67 < H < 23.33.
Correct Answer:

Verified
Correct Answer:
Verified
Q3: Suppose that low-productivity workers all have marginal
Q4: Suppose that low-productivity workers all have marginal
Q5: In Rustbucket, Michigan, there are 200 used
Q6: Suppose that in New Crankshaft, Pennsylvania, the
Q7: Suppose that in New Crankshaft, Pennsylvania, the
Q9: In Rustbucket, Michigan, there are 200 used
Q10: In Rustbucket, Michigan, there are 200 used
Q11: Suppose that low-productivity workers all have marginal
Q12: Suppose that in New Crankshaft, Pennsylvania, the
Q13: Suppose that in Enigma, Ohio, klutzes have