Question: Please explain how to solve part 2, part 3, and part 4 with an explanation thank you A rm is looking to hire a worker

 Please explain how to solve part 2, part 3, and part

Please explain how to solve part 2, part 3, and part 4 with an explanation thank you

4 with an explanation thank you A rm is looking to hire

A rm is looking to hire a worker with complete college education. There are two types of such workers: high-productivity, with marginal productivity of 10, and low-productivity. with marginal productivity of zero. Out of all students completing college, a fraction 19;, has high productivity, and the rest [13; = 1 19;.) have low productivity. The rm is risk-neutral. That is, it only cares about expected prots associated from hiring a worker: the difference between the expected productivity and the wage. '2. Now assume that the rm cannot observe the worker's type. What is the probability that a random job applicant will be a low-productivity worker? Assuming the rm is risk-neutral, what is the highest wage it would be willing to pay for college-educated workers? 3. Keep assuming that the rm cannot observe the worker's type, but now consider a different situation. Suppose that, out of all high-productivity students, a fraction 0 secures a job before graduating (possibly due to internships}, so they don"t go into the unemployed pool. None of the low productivity workers secure jobs before graduating. The rm is considering hiring a candidate who is unemployed some time after graduating. What is the highest wage it should offer to that candidate to avoid negative expected prots? 4. Denote by a; the wage from item 2, and by IBAS the wage from item 3. Find an expression for ((1?! esye) that depends only on 10;; and or. What does that expression means? What happens if a = 0 or a = 1? Interpret your results

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