1. Accounting Firm in Silicon Valley has opportunity to train employee in Java (programming) and accounting law for 1 month

• Worker Productivity without training: $10'000 per month

• Employee's potential productivity increase from knowing Java is $4'000

• Employee's potential productivity increase from accounting law is $6'000

• Accounting firm doesn't benefit from full productivity increase from training

• Training teaches some material that is not fully useful to firm

• Java knowledge: 40% of potential productivity increase is used at firm

• Accounting law knowledge: 60% of potential productivity increase is used
• C+F = 5000.

1. Suppose that, at other firms in Silicon Valley, the training in accounting is considered completely useless (0% of potential productivity increase is used), but the Java training can be used up to its full potential (100% of potential productivity increase is used)
2. How much are the competitors willing to pay the employee (at most)?

1. What is the net value of training at the current firm?