Question: c) Use the simple Akerlof model for lemons to explain the problem of adverse selection in the labour market when an employer wants to fill

c) Use the simple Akerlof model for lemons to explain the

c) Use the simple Akerlof model for lemons to explain the problem of adverse selection in the labour market when an employer wants to fill a vacancy. Also, explain why high ability individuals may rationally choose to invest in tertiary education. [12]

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