4. [15 points] Read this question carefully. Read it several times. In a country called American States United people retire the day they turn 40 and only two education levels are allowed: high school and college. People that do not go to college work, and people that go to college make no money during the four years they are in school. Economists found that ASU women get paid less than comparable men. They also found that job experience pays off for both genders. That is, each additional year of work experience increases earnings. Initial earnings for male college graduates are $50,000, while initial earnings for male high school graduates (those that did not go to college) are $30,000. In ASU, economists found that female college graduates earn $10,000 less than male college graduates for every level of job experience. Female high school graduates earn $6,000 less than male high school graduates for every level of job experience. Furthermore, each additional year of experience increases earnings for both male and female high school graduates by $250. Job experience for college graduates has diminishing marginal returns. Each additional year of job experience increases earning for male and female college graduates by $6,500Xx/Experience. 23 For instance, earnings for college men at age 23 (1 year of experience) are 10M 00, = 50, 000 + (6, 500 X V1); 56, 500, while female college graduates at age 24 (2 years of experience) will earn wFCOE 7 50, 000 10, 000 + (6, 500 X f) 49,192.39. And for example, earnings for high school men at age 19 (1 year of experience) are 10111ng3= 30, 000 + (250 X 1) = 30, 250, while female high school graduates at age 20 (2 years of experience) will earn HIE? HS 7 ,30 000 6, 000 + (250 X 2) 24, 500. Further assume that outofpocket expenditures of each year of college are $90,000, and the discount rate is 2%. Will men and / or women choose optimally to go to college