Asked by Morgan Young on Jun 14, 2024

verifed

Verified

Refer to Scenario 17.1. An employer who only wants to hire individuals who find learning less costly can do so by choosing y* to be anywhere between:

A) 7 and 14.
B) 8 and 13 1/3.
C) 10 and 16.
D) 13 1/3 and 20.
E) 14 and 20.

Learning Cost

The expenses related to acquiring new skills or knowledge, including both direct costs and opportunity costs.

Educational Level

The highest stage of formal learning or schooling that an individual has completed.

  • Assess how assorted cost setups affect individuals' determinations to pursue educational opportunities.
  • Investigate the influence of differing productivity levels on salary inequalities and investment in educational pursuits.
verifed

Verified Answer

MA
Marcos AguirreJun 17, 2024
Final Answer :
B
Explanation :
The employer wants to hire individuals who find learning less costly, which means that they would prefer individuals from Group A.
To maximize the profit, the employer wants to choose y* such that the cost of attaining educational level y* in Group A is less than $50,000 but the cost of attaining educational level y* in Group B is more than $130,000.
Let's set up the inequality:
$6,000y* < $50,000 and $10,000y* > $130,000
y* < 8.33 and y* > 13
Therefore, the possible range for y* is 8 to 13 1/3.
The employer should choose y* to be within this range to hire individuals from Group A who find learning less costly and maximize their profit.