Consider a job market signaling problem. There are two types of workers with ability high (ƟH) and low (ƟL), where ƟH > ƟL.
A worker with education level e knows his productivity Ɵ while his potential employer firm does not know Ɵ (although the potential employer observes the level of education (e).
Firms are behaving competitively. The proportion of the high ability workers in the market is half. The worker chooses the level of education e which the firms can observe. The worker’s payoff is w-(e2 /Ɵ), where w is the wage offered by his employer.
Assume ƟH =3 and ƟL =2.
i. What would be the equilibrium under symmetric information (i. e. theta is common knowledge)?
ii. Under asymmetric information, what is the minimum level of education e the high type worker acquires in separating equilibria? What is the level of education acquired by the low type worker in such equilibria? Discuss how your answer would change if productivity became Ɵ +e.

An investment counselor calls with a hot stock tip. he believes that if the economy remains strong, the investment will result in a profit of $40 comma 00040,000. if the economy grows at a moderate pace, the investment will result in a profit of $10 comma 00010,000. however, if the economy goes into recession, the investment will result in a loss of $40 comma 00040,000. you contact an economist who believes there is a 2020% probability the economy will remain strong, a 7070% probability the economy will grow at a moderate pace, and a 1010% probability the economy will slip into recession. what is the expected profit from this investment?

Alarge university wanted to study the relationship between completing an internship during college and students' future earning potential. prom the same graduating class, they selected a random sample of 80 students who completed an internship and 100 students who did not complete an internship and examined their salaries five years after graduation. they found that there was a statistically higher mean salary for the internship group than for the noninternship group. which of the following interpretations is the most appropriate? a. there could be a confounding variable, such as student major, that explains the difference in mean salary between the internship and no internship groups.b. we cannot infer anything from these data since the distribution of salaries is likely right skewed.c. you cannot draw any valid conclusions because the sample sizes are different.d. more students should complete internships because having an internship produces a higher salary.

*will mark brainliest! * when a company spends resources (labor, money) to give customers "free" items, those costs are called a. investment costs b. economic costs c. scarcity costs d. opportunity costs answer asap!