Question: Repeat Worked-Out Problem 21.1, but assume that the supply function of low-ability workers is QSL = 0.20 (W -2,000)

Repeat Worked-Out Problem 21.1, but assume that the supply function of low-ability workers is
QSL = 0.20 (W -2,000)

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If workers abilities are observable to employers the equilibrium wages are W high 12000 W low 6000 Employers would hire Q high 500 workers Q low 800 workers If workers abilities are not observed by employers the equilibrium wage ... View full answer

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