This program is used by many other MMC professors for their research, and they would love to hire you after you are trained to use the program. Professor Furtado pays her research assistants $1,000 for the first year that they work for her and then $10,000 every year after that. Her reasoning for offering the lower salary in the first year is that when students are just learning the statistical program, they are not very productive. She must spend a lot of time training them and answering questions.

Thus, if you choose to work as a research assistant, you can act as though you will make just $1,000 in the first year, but for your sophomore, junior, and senior years, you will be making the full $10,000.If instead, you choose to serve coffee, you will make $7,000 per year for all four years.

A . Professor Furtado knows that students can really use the cash when they first arrive at MMC, why doesn't she offer them $7,500 each year. This would save her money in the end (7,500 x 4=$30,000 which is less than $31,000 she currently pays her RAs that work for her all four years). Why does she not does this? Why must she offer the $1000 the first year and the $10,000 each year after that?Explain using the concepts of general vs. firm-specific training.