Scenario 17.1
Consider the information below:
For Group A the cost of attaining an educational level y is
C_A(y) = $6,000y
and for Group B the cost of attaining that level is
C_B(y) = $10,000y.
Employees will be offered $50,000 if they have where y* is an education threshold determined by the employer. They will be offered $130,000 if they have
-Refer to Scenario 17.1. An employer who only wants to hire individuals who find learning less costly can do so by choosing y^* to be anywhere between:

Question

Scenario 17.1
Consider the information below:
For Group A the cost of attaining an educational level y is
C_A(y) = $6,000y
and for Group B the cost of attaining that level is
C_B(y) = $10,000y.
Employees will be offered $50,000 if they have

Scenario 17.1 Consider the information below: For Group A the cost of attaining an educational level y is C<sub>A</sub>(y) = $6,000y and for Group B the cost of attaining that level is C<sub>B</sub>(y) = $10,000y. Employees will be offered $50,000 if they have where y* is an education threshold determined by the employer. They will be offered $130,000 if they have -Refer to Scenario 17.1. An employer who only wants to hire individuals who find learning less costly can do so by choosing y<sup>*</sup> to be anywhere between: A) 7 and 14. B) 8 and 13 1/3. C) 10 and 16. D) 13 1/3 and 20. E) 14 and 20.

where y* is an education threshold determined by the employer. They will be offered $130,000 if they have

-Refer to Scenario 17.1. An employer who only wants to hire individuals who find learning less costly can do so by choosing y^* to be anywhere between:

Quizplus · Accepted Answer

The employer wants to hire individuals who find learning less costly, which means that they would prefer individuals from Group A. To maximize the profit, the employer wants to choose y* such that the cost of attaining educational level y* in Group A is less than $50,000 but the cost of attaining educational level y* in Group B is more than $130,000. Let's set up the inequality: $6,000y* < $50,000 and $10,000y* > $130,000 y* < 8.33 and y* > 13 Therefore, the possible range for y* is 8 to 13 1/3. The employer should choose y* to be within this range to hire individuals from Group A who find learning less costly and maximize their profit.

Scenario 17.1 Consider the Information Below