a. If the firm is a profit-maximizer, what wage offer will Jason receive?

b. If the firm is a profit-maximizer, what wage offer will Mario receive?

c. Would the firm offer Jason a wage of $25 if this test was accurate 75 percent of the time?

d. Explain why J workers have less incentive to obtain costly training than M workers?

e. Imagine the government imposes an affirmative action policy upon all firms requiring them to employ an equal percentage of J and M workers. What effect does this have on the incentive to obtain training for J workers? For M workers?