Suppose 40 Percent of All Potential Workers Are Highly Skilled

Suppose 40 percent of all potential workers are highly skilled and contribute $50,000 to the firm each year. The remaining 60 percent of potential workers are less skilled and contribute only $30,000 to the firm each year. When schooling is not used as a signaling device, how much is the firm willing to pay a worker chosen at random?

A) $30,000
B) $34,000
C) $38,000
D) $42,000
E) $50,000