Michael Achu and Gonzalo Reyes both live in small towns. Michael Achu lives in Buea, Cameroon and Gonzalo Reyes lives in El Torno, Bolivia.

Assume that the prevailing wage for a typical worker in Yaound, a big metropolitan city in Cameroon, is CFA500 francs per day. In addition, the prevailing wage for a typical worker in Santa Cruz, a big metropolitan city in Bolivia, is BoB400 bolivianos per day. There is a 60% change that Michael, if he migrates to Yaound, earns CFA500 per day while there is a 70% chance that Gonzalo earns BoB400 per day in Santa Cruz.

(a) Compute Michael and Gonzalo's expected wage if they migrate to their respective big cities.

(b) Suppose that Michael actually earns CFA225 francs per day in Buea while Gonzalo earns BoB150 per day in El Torno as laborers working on cocoa farms. However, Michael is very close to his three younger sisters and enjoys swimming in the local creeks surrounding Buea. Will both Michael and Gonzalo migrate to Yaound and Santa Cruz, respectively? Explain.