Suppose 40 percent of all potential workers are highly skilled and contribute $50,000 to the firm each year. The remaining 60 percent of potential workers are less skilled and contribute only $30,000 to the firm each year. Schooling costs a highly skilled worker y per year, while it costs a less-skilled worker 2y per year. In a competitive market, what wages would be paid to the high skilled workers if employers COULD distinguish between the types?

Select one:

a.$30,000

b.$42,000

c.$38,000

d.$50,000

e.$40,000

Suppose 40 percent of all potential workers are highly skilled and contribute $50,000 to the firm each year. The remaining 60 percent of potential workers are less skilled and contribute only $30,000 to the firm each year. Schooling costs a highly skilled worker y per year, while it costs a less-skilled worker 2y per year. In a competitive market, what wages would be paid to the low skilled workers if employers COULD distinguish between the types?

Select one:

a.$50,000

b.$20,000

c.$40,000

d.$38,000

e.$30,000