What is the pooling equilibrium

Assignment Help Engineering Mathematics

Reference no: EM131505210

Question: Suppose that high-productivity workers have a marginal product of £5,000, low-productivity ones of £2,000. What will the firm pay in the pooling equilibrium? We suppose that workers can either become educated or not educated. Education costs £2,500 for high-productivity workers and £3,500 for low-productivity ones. Is there a pooling equilibrium? Will there be a pooling equilibrium if the costs of education are reversed (i.e. they are £2,500 for low-productivity and £3,500 for high-productivity workers)?

Reference no: EM131505210

Questions Cloud

Insert a comment containing the text format default is ?at : Assignment: Intro XML Authoring- On the same line as the format attribute de?nition, insert a comment containing the text format default is ?at.

Determine the surveys credibility : What kind of critical questions do you have to ask in order to determine the surveys credibility?

Compare the teachings of confucius and aristotle : Compare the teachings of Confucius and Aristotle on what constitutes virtue or good ethical character and conduct.

Different approaches to the measurements of need : Explain the four different approaches to the measurements of need. Provide an example of a need in your life. What type of need is it?

What is the pooling equilibrium : Suppose that high-productivity workers have a marginal product of £5,000, low-productivity ones of £2,000. What will the firm pay in the pooling equilibrium?

People incentives to complete a survey : What do you think of giving people incentives to complete a survey? Does that skew the sample or make it more likely to have a randomized group?

Discuss design of sales taxes income taxes or property taxes : Is the assumption of self-interested behaviour on the part of individuals to be taken literally, or treated as a useful approximation?

Write an essay about destination management organization : Write an essay about Destination Management organization

What factor will determine price at which such licence trade : In some cities, the supply of taxi licences is fixed by city government, and a secondary market in such licences exists.

User Account

All Pages