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3. Consider the following variant of the signaling (or filtering) model of education. High- productivity (Type H) workers have a marginal product of 4 while

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3. Consider the following variant of the signaling (or filtering) model of education. High- productivity (Type H) workers have a marginal product of 4 while low productivity (Type L) workers have a marginal product of 2. Provided employers can determine the type of worker they are hiring, the competitive outcome will result in workers being paid their marginal product. Suppose that the cost of s unit of schooling is s for Type H workers and 2s for Type I workers. Is there an equilibrium with a critical value of education, s' that will allow employers to identify Type H workers, and if so, what is that critical level of schooling? Explain

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