The following figure shows the market for low skilled labor.
The value of marginal product of high-skilled workers is $16 an hour greater than that of low skilled
workers at each quantity of labor. The cost of acquiring human capital adds $12 an hour to the wage that must be offered to attract high-skilled labor. Compare the equilibrium wage rates of low skilled labor and high-skilled labor. Explain why the difference between these wage rates equals the cost of acquiring human capital.