A car dealer has two types of car-salesperson: skilled (SP) and unskilled (UP). Both types can get certified and complete a set of courses, but for the UP type, certification takes extra time and effort. SP types have to spend w days preparing for the certification; UP types take 2.5w days. Certified salespersons can earn $94,000 each year. Uncertified salespersons can earn only $48,000 each year working in the smaller used-car lots. Each day preparing for the certification costs $800 (opportunity cost of not working to study and take the test). The market salary for a SP car-salesperson is $72,000 and $42,000 for a UP. The w from the incentive-compatibility condition for SP is: 57.50 The w from the incentive-compatibility condition for UP is: The w from the participation condition for SP is: The range of w for which a separation of the type of salespersons is: At 23.5 < w < 57.5, SP will take w days to prepare for certification. UP will not submit any w. At 27.5 < w < 57.5, SP will take w days to prepare for certification. UP will not submit any w. At 23.5 < w < 27.5, SP will take w days to prepare for certification. UP will not submit any w. At 23.5 < w < 27.5, SP will take w days to prepare for certification. UP will submit the minimum w. At w = 24, SP payoffs by submitting w is: At w = 24, UP payoffs by submitting w is: At w = 24, SP takes 24 days to prepare for the certification and gets $84,000. UP earns a payoff of $46,000 which is higher than the market wage. 24 days to prepare for the certification and gets $74,800, which is higher than the the market wage. UP earns a payoff of $48,000 which is higher than $46,000 if taking the 24 days. less than 24 days to prepare for the certification and gets $84,000, which is higher than the the market wage. UP earns a payoff of $48,000 which is higher than $46,000 if taking the 24 days. 24 days to prepare for the certification and gets $74,800, which is higher than the the market wage. UP earns a payoff of $46,000 an takes the 24 days to complete the certificate. At w= 24, applicants with w will be regarded as SP. Applicants with less than w will be regarded as UP and earned 46,000. earn the EW at f=45%. be regarded as UP. Applicants with less than w will be regarded as SP and earned 48,000. be regarded as SP. Applicants with less than w will be regarded as UP and earned 48,000. At w = 12, SP payoffs by submitting w is: At w = 12, UP payoffs by submitting w is: At w = 12, UP payoffs by not submitting w is: At w = 12, Both types submit w. The firm cannot differentiate the types. The screening device w is ineffective. Only SP submits w. The firm differentiates the types. The screening device w is effective. Only UP submits w. The firm cannot differentiate the types. The screening device w is ineffective. Both types submit w. The firm differentiates the types. The screening device w is effective. If separation is not possible by using w, then the firm can pay EW = (f=45%)