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Business, 08.10.2019 18:30 michellemonroe012305

Suppose there are two types of employees: type-a and type-b. employers cannot distinguish between the two but know that type-a employees are more productive. specifically, the value of a type-a employee to the firm is $20 and the value of a type-b employee is $10. the cost of education for type-a employees is 2e, where e is a year of education; the cost for type-b employees is 4e. if type-a employees make up 25 percent of the population, what is the pooling equilibrium?

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