Problem
Suppose that you are given and in the signaling model in the chapter. For what value of c are both a pooling equilibrium and a separating equilibrium possible? For what value of c are both types of equilibria possible and do high-ability workers have higher net earnings in a separating equilibrium than in a pooling equilibrium?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.