Scenario 17.2

Consider the information below:

For Group K the cost of attaining an educational level y is

C_K(y) = $2,000y

and for Group M the cost of attaining that level is

C_M(y) = $4,000y.

Employees will be offered $30,000 if they havewhere y* is an education threshold determined by the employer. They will be offered $90,000 if they have

Refer to Scenario 17.2. The highest level of y^*that can be set and still have the high-productivity people choose to meet it is:

a.) 60.

b.) 30.

c.) 15.

d.) 90.

e.) 22.5.