What is the highest level of y that can still be met

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Consider the following information. For Group A the cost of attaining an educational level is CA(y)=$6,000y and for Group B this is CB(y)=$10,000y. Employees will be offered $50,000 if they have y<y*, where y* is an educational threshold determined by the employer. They will be offered $130,000 if the have y>y*.

(a) What is the lowest level of y* that still allows the separate the groups (i.e., that only high productivity people can meet).

(b) What is the highest level of y* that can still be met by high productivity people?

Reference no: EM13242413

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