If a college degree is used to signal high ability, but the cost of a college degree is relatively high,
A) a separating equilibrium is achieved.
B) a pooling equilibrium is achieved.
C) even low-ability workers will attend college.
D) the share of high-ability workers must be 1.
B
Economics
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A rational consumer should not consume more of a good when:
a. total utility is decreasing. b. marginal utility is diminishing. c. both a and b. d. income is decreasing. e. the price is high.
Economics
When the marginal utility derived from a good is negative, total utility is _____
a. increasing b. at a minimum c. equal to zero d. decreasing e. at a maximum
Economics