Question 7, Text Exercise 5.4 N HW Score: 0%, 0 of 11 points Part 1 of 2 (@ RLLILCHE Suppose that you are given w,,, w;, and 8 in the education signaling model. For what value of are both a pooling equilibrium and a separating equilibrium possible? In this problem, wy, is the value of the output that a high-ability worker produces for a firm, w, is the value of the output that a low-ability worker produces for a firm, 0 is the share of the workforce with high ability and (1 - 0) is the share with low ability, and c is the cost of getting a degree in school for high-ability individuals. In this model, low-ability individuals cannot obtain a degree. Both a pooling equilibrium and a separating_equilibrium are possible if the cost of signaling high-ability with a degree for high-ability individuals is such that O A w, w; >c>0(w, w)). O B w, w, >c>(1-0)(w, w). O C. w,>c>w. O D. wy,-w>c>(1-0)(w, w). O E. owy, w=c>(1-0)(w, w)). Question 8, Text Exercise 5.5 HW Score: 0%, 0 of 11 points Save Part 1 of 2 O Points: 0 of 1 Education is a continuous variable, where en is the years of schooling of a high-ability worker and e, is the years of schooling of a low-ability worker. The cost per period of education for these types of workers is c, and c, respectively, where c, > Ch . (Thus, high- and low-ability people are able to obtain education.) The wages they receive if employers can tell them apart are w and w. Under what conditions is a separating equilibrium possible? A separating equilibrium is when OA. G - Ch G - Ch > en > Wh O B. Wh > en > Ch O C. Wh - W Who > en > Ch OD. G>en > Cho OE. W - W >eh >0.Question 9, Text Exercise 5.6 HW Score: 0%, 0 of 11 points Sa O Points: 0 of 1 Education, e, is a continuous variable. Let 0 be the portion of workers with high ability and (1 -0) be the portion with low ability. The cost per period of education for high-ability workers is c and the cost per period of education for low-ability workers is c, where c > Ch. (Thus, high- and low-ability people are able to obtain education.) The wages they receive if employers can tell them apart are w and w. Under what conditions is a pooling equilibrium possible? A pooling equilibrium is possible when education, e, is such that OA. O ( Wn - W/ ) > e. O B. (1-0)w > e. O C. Own - >e. OD. O ( W - w ) > e. OE. Wh - W