(2 points) Consider the general vs. specific training framework that we learned in class. Suppose there

is only one type of job in this economy and everyone works for two periods. Assume that markets are

perfectly competitive with many firms and many workers.

A typical worker without training can generate $70,000 in sales each period. If a worker receives job

training, her productivity during the training period is $50,000 (e.g., she needs to spend time attending

training sessions and hence cannot produce anything while receiving training). However, a trained

worker can generate $100,000 in sales in the second period.

Assume that the firm's cost of providing training is zero. Furthermore, assume

that there are no commitment devices to prevent workers from leaving a firm in the middle of a contract. Based on this

information, which of the following statements is the least plausible? ( Choose one answer)

a)For a worker who receives training, the average productivity over the two periods is $75,000.

b)Suppose the job only requires general skills. If Worker A received general training in the first period at Firm A but moves to Firm B in the second period, Worker A's productivity at Firm B in the second period would be $100,000.

c)Suppose the job only requires firm-specific skills. Assume that Worker A received firm-specific training in the first period at Firm A, but moves to Firm B in the second period. If Firm B does not provide firm-specific training for Worker A, Worker A's productivity at Firm B in the second period would be $70,000.

d)If the job only requires general skills, then firms should provide training and pay their workers $75,000 in both periods.

e)If the job only requires firm-specific skills, it is possible for a firm to earn a positive surplus by providing training and paying workers $60,000 in the first period and $85,000 in the second period.

Explain

why the statement you chose is the least plausible one.