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a) Set up the prot maximization problem for each rm i and take a rst-order condition over Ci: . b) Prove that if the entrepreneur
a) Set up the prot maximization problem for each rm i and take a rst-order condition over Ci: . b) Prove that if the entrepreneur is of higher quality in rm 1 than the entrepreneur in rm 2, she will have a greater demand for quality and outbid the second rm for the higher quality worker. c] What implications does this have for developing countries? About the incentives for education in LDCs
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