Asked by Britanny Espinosa on Apr 27, 2024
Verified
Refer to Scenario 17.2. An employer who only wants to hire those people who find learning less costly can do so by choosing y* to be anywhere between:
A) 15 and 45.
B) 15 and 30.
C) 13 1/3 and 30.
D) 8 and 20.
E) none of the above
Learning Cost
The expenses associated with acquiring new skills or knowledge, including both formal education and informal learning methods.
Educational Level
The highest degree of formal education or training attained by an individual, often influencing job prospects and earnings.
- Investigate the impact of diverse cost structures on the decision-making process for education investments among individuals.
Verified Answer
TM
Traveon MurrayMay 02, 2024
Final Answer :
B
Explanation :
To hire those who find learning less costly, the employer must choose the group with the lower cost for attaining the education threshold y*. From the given information, we know that for Group K the cost is $2,000y and for Group M it is $4,000y. Therefore, we want to find the value of y* such that:
$2,000y* < $4,000y*
Dividing by y*, we get:
$2,000 < $4,000
So, the employer should choose Group K.
Now, we need to find the range of y* for Group K. From the given information, we know that employees will be offered $30,000 if they have where y* is an education threshold determined by the employer. This means that:
$2,000y* = $30,000
Solving for y*, we get:
y* = 15
Similarly, employees will be offered $90,000 if they have
This means that:
$2,000y* = $90,000
Solving for y*, we get:
y* = 45
Therefore, the employer can choose y* to be anywhere between 15 and 45. However, we want to hire those who find learning less costly, so the best choice is the lower end of the range, which is 15.
Thus, the answer is B.
$2,000y* < $4,000y*
Dividing by y*, we get:
$2,000 < $4,000
So, the employer should choose Group K.
Now, we need to find the range of y* for Group K. From the given information, we know that employees will be offered $30,000 if they have where y* is an education threshold determined by the employer. This means that:
$2,000y* = $30,000
Solving for y*, we get:
y* = 15
Similarly, employees will be offered $90,000 if they have
This means that:
$2,000y* = $90,000
Solving for y*, we get:
y* = 45
Therefore, the employer can choose y* to be anywhere between 15 and 45. However, we want to hire those who find learning less costly, so the best choice is the lower end of the range, which is 15.
Thus, the answer is B.
Learning Objectives
- Investigate the impact of diverse cost structures on the decision-making process for education investments among individuals.