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1. Suppose that workers have 4 levels of productivity in a labor market. High productivity is 10, medium productivity is I3, low productivity is 2,

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1. Suppose that workers have 4 levels of productivity in a labor market. High productivity is 10, medium productivity is I3, low productivity is 2, and trump productivity is negative 10. The distribution of workers is US high, 1M medium, 1x'2 low, and US trump. The value of time in leisure is half of labor market productivity. Find the equilibrium wage. Is there adverse selection

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