+1-415-670-9189
info@expertsmind.com

# Get Solution

Perfectly separating equilibrium in this labor market
Course:- Business Economics
Reference No.:- EM13795694

 Tweet

Assignment Help >> Business Economics

In the typical signalling model, it is assumed that the costs of acquiring an education are higher for low-ability than for high-ability workers. Suppose that the government steps in and subsidizes low-ability workers for the higher costs they incur in getting an education (such as giving everyone who has been in school for 12 years a high school diploma, regardless of the person's performance in the classroom). Discuss what happens to the signalling value of a person's education. Can there be a perfectly separating equilibrium in this labor market?

Minimize

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
 When the output is a service rather than a good, it sometimes is difficult to quantify this service. Furthermore, the quality of a service is often as important (if not more i A firm has the exogenous cost function C(Q) = 354Q- 30Q^2 + Q^3. Compute the marginal cost function. Use calculus to find the value of Q at which marginal cost is minimized. C Greece, Portugal, Ireland and Spain are all members of the European Union. All have gotten themselves into sovereign debt trouble (the government can’t pay its debts). Greece If you were boarded on an airplane that had already started taxing for takeoff when the plane suddenly stopped and turned around and the passengers were told to exit immedia In January 2010, the price of gasoline was \$2.70 a gallon. By spring 2010, the price had increased to \$3.00 a gallon. Assume that there were no changes in average income, popu Your product fails about 2% of the time, on average. Some customers purchase the extended warranty you offer in which you will replace the product if it fails. Would you want Let’s say a machinery manufacturing company is having to lower its price to sell its products. How might this situation affect this company’s decision to borrow money and inve When a firm tries to maximize profit by segmenting the market into two groups and charging each group a different price, which group should be facing a lower price? Bundling i