Please help me solve question 3, question 5,6,7 thank you
A rm is looking to hire a worker with complete college education. There are two types of such workers: high-productivity, with marginal productivity of 10, and loi'w-productivity1 with marginal productivity of zero. Out of all students completing college1 a fraction pi. has high productivity, and the rest (1:; = 1 p1,] have low productivity. The rm is risk-neutral. That is, it only cares about expected prots associated from hiring a. worker: the difference between the expected productivity and the wage. 3. Keep assuming that the rm cannot observe the worker's type, but now consider a different situation. Suppose that, out of all high-productivity students. a fraction 0 secures a job before graduating [possibly due to internships), so they don't go into the unemployed pool. None of the low productivity workers secure jobs before graduating. The rm is considering hiring a candidate who is unemployed some time after graduating. What is the highe. wage it should offer to that candidate to avoid negative expected prots? 5. Suppose that rms cannot observe workers' types. Suppose a high school student knows for sure they'll be of the low type is choosing between different universities. Based on the answer from item 3, and assuming that or is the same at all universities, should this high school student choose a school with a higher or lower share of high productivity students ph? Why? Hint: a higher pg does not mean the student will icon: more. The student in this question is sure they'li be low productivity, as p}; only oecta the student 'a outcomes due to unobserved types at the labor market. 6. Now repeat the analysis for a high school student who knows for sure they will he of the high productivity type. Would this student prefer to go to a university with a higher or lower pk? Amume that high productivity workers who get jobs before graduating are paid 10. 7. What does your answer to the last two items say about the value of a selective university