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Q1 Signaling when education is productive | 7 Points A single worker incurs a cost of obtaining education of amount e given by: c(e) = 2 . e2. The worker's wage is based on how much education he obtains. If he receives education less than a threshold amount e, then he receives a wage that is proportional to his level of education: we) = 5 .e And if he receives education greater than or equal to the threshold e, then his wage is proportional to the threshold: we) = 8 . e So the utility that he receives when he chooses a level of education e is a piecewise function: 5 . e-2. e e