Suppose that the cost per year of education is $20,000 per year for a high-productivity person and $50,000 per year for a low-productivity person. Both obtain their degrees in 4 years. The firm will pay a person with a 4-year degree $100,000 more over the next 10-years and will not pay any additional for a worker with less than a 4-year degree. The net benefit to getting the degree

+1 vote
    would be -$50,000 for a low-productivity person and +$20,000 for a high productivity person.
     would be -$100,000 for a low-productivity person and +$20,000 for a high productivity person.
     would be -$100,000 for a low-productivity person and +$100,000 for a high productivity person.
     would be zero for a low productivity person and +$20,000 for a high productivity person.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

0 votes
would be -$100,000 for a low-productivity person and +$20,000 for a high productivity person.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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