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
B
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Over the most recent movements from cyclical peak to trough, 1990: Q3 to 1991: Q2, gross private domestic investment ________ approximately ________ percent
A) fell, 40 B) rose, 5 C) fell, 11 D) rose, 22
An example of an essential facility is
A) the telephone line into your house. B) U.S. Route 66. C) the Golden Gate Bridge. D) your local pizza parlor.
Suppose Mark invests a sum of $100,000 in a new venture. To fund his investment, Mark withdraws $50,000 from a savings account paying 10% per year and uses the proceeds from a bond that has just matured worth $50,000 . If he had reinvested the proceeds from the bond, he could have earned interest at the rate of 5%. Calculate the opportunity cost of capital for Mark in a particular year
a. $5,000 b. $7,500 c. $10,000 d. $12,500 e. $100,000
At the time the government of Bulgrovia issued new bonds, they issued them at a price that reflected the risk-free rate because investors had no concerns regarding default risk, so did not require a risk premium. That risk-free rate was 4%. These bonds currently have one year to maturity and you notice the yield is 20%. Can you calculate the probability that the Bulgrovian government will default?
What will be an ideal response?