Suppose that you are given wh, wl , and in the education signaling model. For what

Suppose that you are given wh, wl

, and θ in the education signaling model. For what value of c are both a pooling equilibrium and a separating equilibrium possible? For what value of c are both types of equilibria possible, and do high-ability workers have higher net earnings in a separating equilibrium than in a pooling equilibrium? (Hint: See Solved Problem 18.4.) M