Assume that low-skilled workers have marginal products of 10 and high-skilled workers have marginal products of 12. There are equal numbers of each type of worker. The workers can take a course to improve their skills. High-skilled workers think taking this course is as bad as a wage cut of $5, and low-skilled workers think it is as bad as a wage cut of $9.

a.

There is a separating equilibrium in which high-skilled workers take the course and are paid $17 and low-skilled workers do not take the course and are paid $10.

b.

There is no separating equilibrium, but there is a pooling equilibrium in which everybody is paid $11.

c.

There is no separating equilibrium and no pooling equilibrium.

d.

There is a separating equilibrium in which high-productivity workers take the course and are paid $12 and low-productivity workers are paid $11.

e.

There is a separating equilibrium in which high-skilled workers take the course and are paid $12 and low-skilled workers do not take the course and are paid $10.